Fitch: Growth Outlook ‘Brisk’ for U.S. Private Construction

Private U.S. construction appears set for another strong year of growth albeit at a slightly lower rate, reported Fitch Ratings, New York.

Fitch projects private residential construction will increase by 9.5 percent this year, private nonresidential to grow by 7 percent and public construction to improve by 4 percent for 2016.

This comes after a strong finish to 2015 for U.S. construction activity, led by growth in the private sector. Overall, construction spending grew by 9.2 percent during the fourth quarter and by 10.5 percent for all of 2015. Private construction spending grew by 11.6 percent during the quarter, with residential construction increasing by 11.5 percent and nonresidential construction improving by 11.7 percent. Growth in public construction spending slowed down a bit, advancing by just 3.0 percent during the quarter compared to 6.7 percent reported for the first nine months of 2015.

The report, U.S. Building Materials Volume and Pricing Trends Fourth Quarter 2015, said aggregates producers reported solid gains during the quarter, driven by strong pricing and higher shipments. Based on Producer Price Index data, prices for wallboard, architectural coatings and roofing products were slightly lower year-over-year “as input costs remain generally subdued for these products.”