The Construction industry in United States of America registered an output value of USD 1,909,200 million in nominal terms in 2021
The indicator recorded a historical growth (CAGR) of 5.18% between 2018 and 2021, and is expected to grow by ...
GlobalData projects the indicator to grow ...
US Construction Market Analysis
The US construction industry has marginally grown in 2021. In nominal terms, construction activity rose at a faster pace, reflecting the impact of the surge in material costs. Growth was supported by strong construction activity in the residential sector, which offset the decline seen in non-residential building construction works. Excessive demand was driven by a glut in savings, and record-low interest rates have enabled high growth in the residential sector, despite supply-side shortages and cost hikes. However, much of the gains in nominal terms made in 2021 will have been negated by persistent price increases, and this remains a key downside risk for future growth in the industry.
Residential Construction: The residential construction sector is expected to further increase in the coming years. The sector is then expected to moderate over the remainder of the forecast period, supported by low mortgage rates, strong demand for bigger living spaces, low housing inventory and the government’s investment in affordable housing projects.
Institutional Construction: GlobalData expects the sector to register single digit annual growth from 2022 to 2025, on the back of the government’s measures to raise more investments in education and healthcare facilities.
Output value means the total revenue of construction services during a set period. It is the sum of receipts from domestic construction, net receipts from construction activities abroad, receipts from products sold, receipts from industrial services carried out for others, receipts from goods sold in the same condition as purchased less the cost of goods sold, value of fixed assets produced, and changes in inventories of finished products and work in progress. It covers all forms of construction activities, including new builds, renovation, repair and maintenance, and demolition, and the three cost types: construction services, construction materials and construction equipment.
Nominal data, also referred to as current prices data, includes changes in prices as well as changes in actual volume. Therefore, growth rates in nominal terms can overstate the pace growth in construction activity if there is high inflation that is reflected in rising prices for key inputs.
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