Stimulus seen lifting U.S. public works-McGraw Hill
NEW YORK |
NEW YORK (Reuters) - The recently enacted U.S. government stimulus plan is seen lifting spending on public construction projects this year, McGraw-Hill Construction said in an update of its 2009 industry forecast.
Construction starts of public works are seen seen rising 10 percent this year, McGraw-Hill said, including a 15-percent rise in construction of highways and bridges. Public works starts would have been down 10 percent this year without the stimulus, according to the forecast.
Overall, new U.S. construction starts are expected to fall 15 percent this year to $463.1 billion.
The institutional building category is expected to decline by 6 percent, partly reflecting less spending on educational and health care facilities.
Commercial building will fall 27 percent, a steeper decline than in 2008, led by the hotels industry. More projects are being deferred or canceled amid tight credit.
"There's yet to be any sign that lending conditions for construction have improved," said Robert Murray, McGraw-Hill Construction's vice president of economic affairs.
Housing construction is expected to drop by 31 percent, with single-family homes and apartment building categories declining at similar rates. The pace of decline could slow later in the year, McGraw-Hill said.
Companies that sell to the construction market include diversified manufacturer Honeywell International Inc , lighting maker Acuity Brands Inc and electrical components maker Thomas & Betts Corp, as well as heating and cooling systems makers Ingersoll-Rand Co Ltd and Johnson Controls Inc.
Caterpillar Inc, Deere & Co, Terex Corp , Illinois Tool Works Incand Eaton Corp are also exposed to the construction sector. (Reporting by Nick Zieminski, editing by Gerald E. McCormick)
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