Construction Industry Forecasting
Which areas of construction are projected to see a decline this coming year?
Institutional and public spending will be down in 2014. This has been expected, since these two areas of construction have recently seen elevated levels of spending relative to GDP. A decrease in these two areas will help [to keep] the federal government from getting deeper into debt.
Ken Simonson forecasts 2013 public construction spending to continue its 3 percent to 6 percent decline, with highway spending flat and education construction down 5 percent. He suggests that no matter what happens in politics, public construction spending will continue to erode given the federal deficit and state tax revenue situations.