By its nature, the construction industry is an optimistic group. However, by the end of the “summer of recovery,” firms’ rosy view that better times were right around the corner has been tested and found wanting. Major contractors, engineers, subcontractors and construction service firms have concluded that the industry recession will last for the foreseeable future and that they need to be prepared to hold on for as long as it takes.
The ENR Construction Industry Confidence Index (CICI) for the third quarter of 2010 plunged to 32 on a scale of 100 from a relatively optimistic 41 in the second quarter ; an index of 50 would mean a stable market. Responses from 610 executives of large construction and design firms confirm the general sense that there will be no recovery any time soon, either in the construction market or in the general economy.