AIA Scales Back Nonresidential Growth Projections

The American Institute of Architects scaled back growth projections due to slower than expected activity in the nonresidential construction sector in the first half of the year, according to a July 31 AIA report. The AIA revised its nonresidential forecast downward following a "noteworthy drop in demand for institutional projects," according to the report.

Participants in the AIA's semi-annual Consensus Construction Forecast reduced projections for spending to a 2.3 percent increase in 2013 and raised next year's projections to 7.6 percent, according to the report.“A disappointing recovery of the U.S. economy is limiting need for new nonresidential building activity,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA, in the report. “Optimism for a stronger performance next year is based on the recent increase in domestic energy production, the boost to the general economy from a resurgent housing market, and improving employment figures that should help drive demand in the design and construction sectors.”

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