Heavy construction spending increased 0.4% in March entirely due to power construction. Natural gas activity continues to expand. Alternative electricity generation is still expanding with federal subsidies but this funding source is now being cutback by Congress. The balance of the heavy market is trending steady to slightly down. The inflow of new public funds will continue to shrink into 2012. However, funding for private facilities will soon be rising in an expanding economy that is quickly absorbing spare capacity. The amount of federal highway funding beginning in October is still uncertain.
Heavy construction spending is forecast to decline 0.3% in 2011 and then rise 4.0% in 2012.
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