Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: Continued strength in homebuilding, heightened industrial construction, and an increase in
investment in transportation infrastructure will sustain growth in the US construction industry in 2016.
Although, growth rates will begin to slow as the residential construction - the main driver of growth - starts
to normalise following a steep recovery over the last few years.
Latest Updates And Structural Trends
? Continued strength in residential construction, coupled with heightened investment into commercial and
industrial construction, will be enough to offset cuts in the energy sector and drive construction industry
growth to 3.0% in 2016.
? The Fast Act, a 5-year surface transportation bill passed in December 2015, will help drive transport
infrastructure growth by increasing federal spending (average of 3.5% increase annually over next five
years) and giving state and local governments budget clarity.
? The residential building industry will continue to be the key driver of construction industry growth
moving into 2016. Leading indicators, including housing starts, permits, and homebuilder confidence all
point to continued strength. While momentum will be maintained throughout 2016, we believe it will
eventually slow as base effects, increases in mortgage rates and high prices begin to drag on growth.
? We expect to see increased investment into water infrastructure as major crises - including Flint
Michigan, the California drought, and climate change - necessitate new projects ranging from pipe
replacements, to reservoirs and desalination plants and major adaptation projects.