FMI First Quarter 2017 Construction Outlook
FMI’s forecast for 2017 predicts an increase of 6% for total construction put in place. Although this is a drop from the hot pace of growth from 2013 through 2015, it seems to indicate that the recovery bounce is over and more normal growth is in store for the next few years.
The Index score for the second quarter NRCI slipped 1.1 points to 61.4 but maintains a level of optimism for construction in 2017. The backlog index indicates a median of 12 months, unchanged for the last three quarters, and the cost of labor index is still indicating higher costs. Other economic components gained or lost within a point of last quarter’s results. The areas to watch, however, are the market indexes. As in our Outlook forecast, panelists expect manufacturing construction to have solid growth for the next three months to three years. Other markets are still registering solidly positive numbers, but lodging, office and commercial construction indexes indicate that NRCI panelists expect a sharp downturn in those markets next year, particularly for commercial and lodging construction.