World Construction Market Hit with Steepest Drop in 20 Years
Construction Spending Will Fall 3.7% in 2009

The global construction market is set to be hit with the steepest decline in spending in at least 20 years, with an expected contraction of 3.7% in 2009. The unusual contraction in world construction activity is occurring as a result of simultaneous downturns in national economies around the globe. The projected 2009 drop follows a 1.8% decline in 2008, which will bring about the first back-to-back annual declines in global construction spending in at least the last two decades.             Click here to download    free samples of    IHS Global Insight's    Construction Services.

Every region except Asia will see declines in construction spending, while Asian growth—slated to be 2.6%—will be well below the double-digit increases seen in recent years. The bright spot in the outlook comes from the numerous fiscal-stimulus packages with infrastructure spending at their core. While global residential and nonresidential spending will contract nearly 10% and 5%, respectively, infrastructure spending will actually grow by more than 5% in 2009. This will result in a slight recovery in 2010, with global construction spending returning to its 2007 peak of $5.8 trillion in 2011. "While 2010 will be weak, Asian dynamism and North American resilience will return to lead global construction growth near or above 5% in 2011 and 2012," Scott Hazelton, Director of Construction Services at IHS Global Insight. IHS Global Insight forecasts construction spending for multiple sectors in 69 countries. Regional coverage is also available for Canadian provinces and U.S. states and metro areas. Additionally, we provide in-depth analysis of the U.S. renovation and infrastructure sectors. To learn more, visit http://www.ihsglobalinsight.com/construction.