Although the nation’s economy is still growing out of its pandemic doldrums, nonresidential investment remains on a downward slope.
That’s the finding of a new study just released by the Associated Builders and Contractors showing that investment in nonresidential structures was off by 11.4% during the last four months of 2021.
In the entire year, the decrease averaged out to 8.2%, In 2020, the year-long average saw a decrease of 12.5%.
In a statement, Anirban Basu, chief economist with ABC, remarked that retail bankruptcies first seen in large numbers in 2020 have continued to contribute to “increased store closures and vacant retail space.”
This trend, said Basu, “has further reduced demand for commercial construction services.”
According to ABC statistics, the overall decline in structure investment comes after an enormously expansive decade during which the average yearly increase was at or above the 15% rate.
Despite the ongoing investment decline, Basu remarked that “healthcare and industrial construction should emerge as other sources of expanding demand for construction services during the coming months.”
That new demand, according to Basu, could significantly prop up contractor confidence.
By Garry Boulard
