- An expectation that the Fed will find it prudent to raise interest rates yet another time or two in the next two or three quarters;
- The economy will continue to drift downward and will execute a soft landing about midyear in 2001, at which time it will begin a rather energetic rebound;
- Educational construction will continue its recent boom with predicted growth of 14% in both 2000 and 2001; and
- In the non-building sector, utility structures will leap 15% and highway construction will increase 7% in 2000 and will continue to grow in 2001.
According to Thomas R. Loy, FMI’c chief economist, the current forecast indicates that construction put in place will increase 6% in 2000 and 5% in 2001. By sector, this translates to 5% this year and 4% next year for nonresidential construction, and 10% this year, and 7% next year for nonbuilding construction.
For more information on the Construction Outlook – Fourth Quarter 2000 Report, visit www.fminet.com.