In contrast to other industry associations who claim the US construction industry will improve in 2011, the American Institute of Architects (AIA) said Wednesday that US nonresidential construction activity will fully recover in 2012 after declining further in 2011. Hotel and retail sectors will lead the charge, according to the AIA's semi-annual forecast.
The forecast predicted that overall nonresidential construction spending will dip 2 percent this year, followed by a 5 percent rise in 2012. Back in July 2010, the AIA predicted a stronger recovery in 2011, but the timetable has been extended due to low lending rates for the real estate sector, lingering effects of overbuilding and an unfavorable bond market.
The AIA further predicts that industrial construction will fall 11.8 percent in 2011, with smaller decreases in office, hotel and retail construction. However, the AIA expects construction spending on healthcare, religious and recreational facilities to improve slightly this year.