RCD Halves 2012 Construction Spending Forecast

Reed Construction Data reduced its construction spending forecast for 2011-13 based on a series of negative developments in the last few weeks.

The forecast for 2011 is for a 4.8% decline; previously a 4.2% decline. Expansion in 2012 has been cut to 4.8% from 10.5%. Expansion in 2013 is now expected to be 10.2%, down from 14.4%.

Risk of a recession in the next twelve months has risen to at least 25%.

(Why RCD slashed its construction spending outlook . . . )