Construction spending as a percentage of GDP (gross domestic product) is expected to regain some of the ground lost during the “Great Recession” of 2008-2011. Spending in the South and West is projected to slightly outpace expenditures in the Midwest and Northeast due to faster population and GDP growth. Construction expenditures are forecast to grow 4.3% yearly in nominal terms through 2023, according to Construction: United States, a report recently released by Freedonia Focus Reports. Contractors stand to benefit from continued gains in the number of households; consumer incomes; and business, nonprofit organization, and government investment.
Residential construction is projected to remain the largest segment. The rising number of households and growth in disposable incomes will spur demand for single- and multiple-unit housing. Expenditures for infrastructure construction are expected to rise 4.9% yearly to 2023, the fastest rate among major market segments. Contractors specializing in nonbuilding projects will benefit from continued growth in government budgets, which will allow for larger investments in infrastructure.
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