Posted March 27, 2018

FMI issues Q1 Construction Outlook

Group forecasts a 7 percent increase in engineering and construction spending in 2018.

FMI’s forecast, the FMI Construction Outlook, forecasts an increase of total engineering and construction spending for the U.S. of 7 percent in 2018, compared to 4 percent in 2017.

Spending growth in 2018 is forecast to be led by residential and select nonresidential segments. Current top-three-performing segments forecast in 2018 include:

  • Residential improvements (+12 percent)
  • Single-family residential (+7 percent)
  • Office (+9 percent)

The bottom-three-performing segments include:

  • Religious (-4 percent)
  • Sewage and waste disposal (-1 percent)
  • Water supply (-3 percent)

Growth in several segments appears to be flattening out or stabilizing in 2018, including two prior high-growth segments from 2017, multifamily residential and lodging. Other stabilizing segments include manufacturing, power and highway and street, all three of which were down through 2017.

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