According to the American Institute of Architects (AIA), nonresidential construction spending on buildings is projected to grow by 4.4 percent this year.
Healthy gains in the industrial and institutional building sectors have bolstered growth projections for this year. However, the AIA Consensus Construction Forecast Panel is suggesting a broader economic downturn may be materializing over the next 12 to 24 months.
“Though the economy has been performing very well recently, trends in business confidence scores are red flags that suggest a slowdown is likely for 2020,” said AIA chief economist Kermit Baker, AIA, PhD. “These signals may be temporary responses to negative short-term conditions, but historically they have preceded a more widespread downturn.”