The construction industry is not recovering as quickly as expected, says Robert A. Murray, McGraw-Hill Construction's vice president of economic affairs. Total construction starts in 2011 are forecast to reach $413 billion, a 3% decline from 2010, Murray says in an update of MHC's mid-year outlook. Expectations were higher for this year as starts had leveled off last year after plunging 24% in 2009.
First-half 2011 starts have "bounced along the bottom," providing little evidence that the industry is heading toward sustained growth, Murray says. He cites a weak single-family housing market and a steep decline in public works.