The message that the author is putting forth in this article is that 2016 was a peak year for construction throughout the United States. This year, 2017, is going to face a decline in both commercial and industrial construction as commodities rise in price and the interest rate grows bigger.
- Construction activity is expected to slow this year as markets lose steam after the 2016 building extravaganza.
- That’s according to the Associated Builders and Contractors, which said U.S. commercial and industrial construction levels will drop this year as commodity prices rise and a further interest rate hike looms, CoStar reports.
- But it’s not all bad news for the property market, the economy is still expanding and should support at least a 3.5% non-residential spending expansion this year, experts predict.
“It’s likely 2016 will prove to be the peak year for total CRE construction this cycle, and this year construction will begin to moderate, CoStar forecasts indicate.”
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