Commercial Construction Spending Projected to Post Fifth Straight Year of Growth

Commercial construction is expected to end 2015 with growth of 8% on top of 18% growth for 2014. Weighing in at $67.7 billion for 2015, the largest construction sector reflects the continued improvement in the U.S. economy. Some of the fastest-growing areas in this segment include drinking establishments and food service companies.

According to the U.S. Census Bureau, “Advance estimates of U.S. retail and food services sales for August, adjusted for seasonal variation and holiday and trading-day differences but not for price changes, were $447.7 billion — an increase of 0.2% (±0.5%) from the previous month, and 2.2% (±0.7%) above August 2014. Total sales for the June 2015 through August 2015 period were up 2.2% (±0.5%) from the same period a year ago. The June 2015 to July 2015 percent change was revised from +0.6% (±0.5%) to +0.7% (±0.1%).”

While many national chain stores are closing properties, new startup businesses are taking off in major metro areas. Though online sales continue to grow, the future will be an integration of storefronts and online marketing. Closings of well-known chain stores like Sears, JCPenney, and RadioShack signal a change in consumer shopping habits as well as an example of traditional brands’ inability to move along with the trends.

After rising 10.5 points in August to 101.5, the Consumer Confidence Index from The Conference Board rose 1.7 points in September, indicating consumers remain optimistic but cautious.