U.S. Construction Starts Fall Below Expectations in Q3

CMD Releases Quarterly Forecast Report Predicting Improvement for
Residential and Non-Residential Construction in Q4

ATLANTA–(BUSINESS WIRE)–U.S. construction starts came in slightly below expectations during the
third quarter, with stronger activity in the civil engineering sector
being more than offset by weaker growth in the residential and
non-residential segments. Residential starts continued to post a healthy
pace of annual growth, and the apparent weakness in the non-residential
segment may be overstated due to upward revisions in historical data,
according to CMD’s
latest quarterly forecast report.

The Q4 forecast, which combines CMD’s proprietary data with
macroeconomic factors, showed construction starts are expected to grow
6.8 percent in 2015, a little less than CMD’s Q3 prediction of 7.1%.

“Domestic activity is driving U.S. growth,” said Alex Carrick, CMD chief
economist. “After a slow start in 2015, US GDP recovered strongly in Q2,
and robust domestic activity is expected to drive growth over the next
few years.”

According to the report, construction starts are expected to grow by 8.4
percent in 2016, as rising household incomes boost growth in the
residential sector and stronger business investment elevates the
non-residential sector. Only civil engineering construction is expected
to slow from its heady pace in 2015.

“A good gain in U.S. construction starts in 2015 will accelerate in 2016
and 2017, before settling down in 2018,” stated Carrick. “Some
moderation in engineering strength, which has been a mainstay of
site-work lately, will be compensated by a pick-up in non-residential
building activity. In residential, pent-up demand for new housing
continues to accumulate and will soon need addressing.”

For more information about CMD, visit cmdgroup.com.

About CMD

CMD,
the Inaugural Strategic Partner of the AIA, is a leading North American
provider of construction information. CMD’s diverse portfolio of
innovative products and technologies includes national, regional and
local project leads, marketing solutions and market intelligence to
provide insight to construction industry professionals throughout the
U.S. and Canada. Visit the CMD website at cmdgroup.com.

Contacts

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Mike Rieman, 404-816-2037