Construction Executives See Market Shifting Into Recovery Mode According To ENR's Construction Industry Confidence Index
NEW YORK, March 21, 2013 /PRNewswire/ -- The construction industry has begun its recovery and 2013 will show meaningful gains in what has been a sluggish industry, according to construction executives surveyed in today's issue of Engineering News-Record (ENR) magazine and on ENR.com ( http://enr.construction.com/), published by McGraw-Hill Construction ( http://www.construction.com/). The ENR Construction Industry Confidence Index (CICI) for the first quarter of 2013 shows a dramatic leap in expectations about the current and near term by construction and design firm executives.
The Q1-2013 CICI, which measures industry sentiment for market sectors and trends, is 64 on a scale of 100, indicating a belief that the market is in recovery mode. This quarter's figure is significantly higher than the Q4-2012 CICI rating of 50, where survey respondents characterized the market as still in decline and struggling to make real gains. The index is based on 376 responses to surveys sent to more than 3,000 domestic firms on ENR's lists of leading contractors and engineering firms.
As for the current market, only 13% of industry executives polled believe it is still in decline, while 32% believe it is growing. Further, 44% believe the market will be in growth mode within the next six months. Construction executives firmly believe that there will be a full recovery in 2014, with 58% saying the market will be on the upswing, compared to only 8% of respondents who believe the market will continue to be in decline in 12 to 18 months.
Survey respondents believe the private-sector markets are the healthiest. The construction sectors perceived to be the strongest were petroleum, power, health care and multi-unit residential. All sectors measured by the survey were on the upswing except the water supply and sewer market, which was flat.
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