AIA Lowers U.S. Construction Forecast

The American Institute of Architects (AIA) says spending on non-residential construction is less than anticipated. The result: Economic forecasting is off. State and local governments have scaled back investments on schools and health care properties, according to the AIA’s chief economist, Kermit Baker. Bloomberg.com reports that a slowdown in funding for institutional projects, which include education, health-care, religious and public-safety facilities, has been a drag on the recovery of the wider industry. “Total spending on commercial and institutional development probably will increase 4.9 percent this year, down from an earlier estimate of 5.8 percent,” according to AIA’s semi-annual survey.

 

http://www.bloomberg.com/news/2014-07-25/architects-group-lowers-u-s-construction-forecast.html