Commercial Construction Growth To Slow in 2008

Washington, DC, January 16, 2008--Spending on commercial construction projects will continue to rise but at a slower rate this year, according to the American Institute of Architects.

The group says commercial construction should rise about 0.7 percent in 2008 but decline by 0.9 percent in 2009, according to AIA's biannual forecast.

Commercial construction rose 7.5 percent in 2007.

AIA Chief Economist Kermit Baker said the downturn so far looks to be fairly mild but the long-term forecast could change depending on a number of factors. He said less speculative building during the last upturn is likely moderating the downturn.

Office and hotel construction is expected to increase this year, but softening retail sales will depress construction in that sector. Spending in the industrial sector is also expected to fall.

All segments, except industrial, are expected to fall in 2009.

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