2009 Forecast: Only Education and Multi-Family Up in WA State

Only education and multi-family construction will see an increase in Washington State next year according to a forecast by McGraw-Hill Construction.

The overall level of construction starts nationally in 2009 will slide another 7 percent to $515 billion after the 12 percent decline in 2008 predicted Robert Murray McGraw-Hills Vice President for Economic Affairs in his annual construction outlook.

Regarding unprecedented federal efforts to deal with the financial crisis Murray said these efforts will take time to have an impact. The news about the economy will show continued weakness he said. After 1.6 percent expansion in 2008 the U.S. economy is anticipated to grow just one percent for the full year 2009. The GDP reading at the start of 2009 will be flat to negative but with improving liquidity in the financial markets GDP growth should move back to the two to three percent range by years end.

Below is Murrays 2009 forecast for construction starts in Washington State:

  2004 2005 2006 2007 2008 2009
Education $892566 $1131164 $1180321 $1403886 $1088563 $1275857
    126.7% 104.3% 118.9% 77.5% 117.2%
Government $251408 $211689 $363061 $187040 $281463 $238110
    84.2% 171.5% 51.5% 150.5% 84.6%
Health $288568 $613961 $437792 $641052 $640359 $606580
    212.8% 71.3% 146.4% 99.9% 94.7%
Highways $663692 $781888 $727363 $877778 $869143 $783982
    117.8% 93.0% 120.7% 99.0% 90.2%
Hotels $130707 $220800 $364518 $237394 $294078 $235377
    168.9% 165.1% 65.1% 123.9% 80.0%
Manufacturing $566712 $215315 $228193 $210919 $121674 $126392
    38.0% 106.0% 92.4% 57.7% 103.9%
Multi Family $805277 $1040867 $1975551 $1898104 $1058373 $1010305
    129.3% 189.8% 96.1% 55.8% 95.5%
Office $472303 $337649 $869335 $1091670 $1043587 $852510
    71.5% 257.5% 125.6% 95.6% 81.7%
Retail $418528 $423773 $563693 $733843 $549245 $467537
    101.3% 133.0% 130.2% 74.8% 85.1%
Single Family $6490588 $8058816 $7424830 $6487973 $3890406 $3771726
    124.2% 92.1% 87.4% 60.0% 96.9%
Water Supply $164226 $193005 $266181 $300791 $279028 $250642
    117.5% 137.9% 113.0% 92.8% 89.8%
Total $14129734 $17064554 $18722572 $19317146 $14065856 $13050343
    120.8% 109.7% 103.2% 72.8% 92.8%