IHS, the leading global source of information and analysis, said today it has lowered the outlook for global construction spending in 2012 to 4.9 percent in the face of economic difficulties in the U.S. and Eurozone. Concern over sovereign debt is expected to lead to a mild recession in the Eurozone and the U.S. economy continues to fail to gain significant traction.
The outlook through 2015 sees global construction spending increasing at a compound annual growth rate of 4.7 percent, while the outlook beyond 2015 calls for a return to moderately strong growth, according to the Third Quarter 2011 IHS Global Insight Global Construction Outlook.
The 2012 growth leaders will be Panama, with growth of nearly 13 percent over 2011 spending levels as expansion of the Panama Canal continues; Japan and New Zealand, as reconstruction from earthquake damage drives spending; China, on the strength of the government’s emphasis on development in interior and western regions; and Saudi Arabia, where increased investments in infrastructure and housing, coupled with higher oil prices will drive spending.
Spain, Portugal, Greece, Ireland and Italy will see contractions in construction spending, as sovereign debt issues will force austerity measures and discourage investment. Canada will also see declines in spending, on cutbacks after the 2012 elections.
For the longer term, in addition to the Panama Canal expansion project, construction of sports venues in Latin America, the Middle East and Europe will have a major impact on the outlook. Upcoming FIFA World Cup Tournaments, Olympic Games and other events will add to the overall construction spending in the U.K., Brazil, Russia, Poland and Qatar.
For the Third Quarter Global Construction Outlook Executive Summary, please contact Jim Dorsey at Jim.Dorsey@ihs.com or Kate Smith at Katherine.Smith@ihs.com.
IHS (NYSE: IHS) is the leading source of information and insight in critical areas that shape today’s business landscape, including energy and power; design and supply chain; defense, risk and security; environmental, health and safety (EHS) and sustainability; country and industry forecasting; and commodities, pricing and cost. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS employs more than 5,400 people in more than 30 countries around the world.
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