The construction sector of the U.S. economy is expected to see mild recovery through the end of 2012 with accelerated growth in 2013, said Kermit Baker, chief economist for the American Institutue of Architects.
Baker and two other economists spoke during a mid-year construction forecast press conference hosted online by Associated Builders and Contractors.
Baker said industrial construction spending is forecasted to increase 6 percent in 2012, followed by commercial construction at 5.6 percent and non-residential at 2.1 percent. Institutional construction, which includes that of hospitals, arenas and schools, is expected to see a 0.1 percent decrease.
Quite the turnaround is expected in 2013, with commerical construciton expected to see an 11.4 percent spending increase, followed by industrial at a 10.2 percent increase, non-residential a 6.4 percent increase and institutional a 3.6 percent incrase.
The U.S. Department of Commerce announced Tuesday morning that overall housing construction fell 4.8 percent in May to a rate of 708,000 units per year.
However, David Crowe, chief economist for the National Association of Home Builders, said according to the NAHB/Wells Fargo housing market index, the market has enoyed a nice climb in recent years to 29, the highest total in five years.
