More rough waters lie ahead for the worldwide construction industry, according to IHS Global Insight Construction Service, Lexington Mass., which predicts further decreases in construction spending. According to first-quarter data from 69 markets, IHS predicted construction spending would remain flat in 2010. However, Laura Hanlon, the research firm’s product manager, admits that, in light of recent economic turmoil, the first-quarter outlook was a little overly optimistic.
“As of quarter one, we were still optimistic for a flat 2010,” said Hanlon. “However, we just released a new forecast [on June 30], and with the information we have received through quarter two, we are little more pessimistic. Where we were predicting a flat 2010, our expectation has lowered to a -2.1% growth for this year, worldwide.”