Total U.S. Construction Starts Pulled Back in First Quarter 2017

ConstructConnect is a leading provider of construction information and technology solutions in North America.

ConstructConnect, a leading provider of construction information and technology solutions in North America, announced today the release of its Q2 2017 Forecast Quarterly Report. The report sets out a year-over-year grand total 2017 starts change that has been eased back to +4.8% from the +7.4% figure that was estimated in Q1 of this year. 2018 has also been modified down, but to a lesser degree, to +6.0% from +6.4%.

“The revision to 2017 was warranted by weaker than expected first quarter ‘actuals,’” said ConstructConnect Chief Economist, Alex Carrick. “Also, the new administration in Washington is taking a long time to settle in and achieve the successes it would like in areas of personal and corporate tax cuts and a commitment to massive infrastructure spending.”

The Forecast Quarterly Report, which is free to all ConstructConnect Insight customers, combines ConstructConnect’s proprietary data with macroeconomic factors and Oxford Economics econometric expertise suggests a more cautious outlook for the remainder of the year:

  • The residential starts figure for 2017 has been lowered from +9.5% to +8.1%, although considerable pent-up demand exists in the single-family home building market; the issue is the extent to which millennials will de-camp from downtown cores in favor of the suburbs once they form their families and begin raising children
  • The non-residential building outlook has been revised to no growth in 2017 and +4.5% in 2018 from previously estimated levels of +4.9% and +4.7% respectively
  • A current strong hotel/motel construction market rubs against worries about potential declines in foreign…

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