FMI just released their Third Quarter 2019 North American Engineering & Construction Outlook, which features comprehensive construction forecasts for the U.S. and Canada as well as information on key market drivers.
Key highlights of the report include:
- Total engineering and construction spending for the U.S. is forecast to end up <1 percent in 2019, compared to up 3 percent in 2018.
- U.S. spending growth in 2019 is expected to be led by public investment across both nonresidential buildings and nonresidential structures. Current top-performing segments forecast in 2019 include conservation and development (+10 percent), water supply (+9 percent), public safety (+9 percent), transportation (+8 percent) and sewage and waste disposal (+8 percent).
- Only one U.S. segment was upgraded into our growth category through the second half of 2019, lodging. On the other hand, commercial was the only segment downgraded, from stable to down. Despite stable fundamentals, all three residential segments continue to show weakness and are expected to end this year below 2018 spending levels.
- FMI’s Nonresidential Construction Index (NRCI) at 50.4 is the lowest score recorded in more than seven years. An index score over 50 suggests improving or expanding industry conditions.
- Several of Canada’s segments, including conservation and development, power, public safety, sewage and waste disposal, and water supply, were upgraded into our growth category through the second half of 2019. In contrast, the lodging and office segments were downgraded from growth to down.
To access the Q3 2019 FMI Outlook, featuring FMI’s latest forecasts for US and Canada, click here.