Commercial construction is lifting credit market, says S&P
In a report entitled "Commercial Construction Markets are Helping to Repair U.S. Building Materials,” Standard & Poor's Ratings Services has posited that commercial construction and the slowed rate of spending decline for that sector has helped the overall credit availability for construction projects.
Standard & Poor's economists are projecting a 14% increase in residential housing in 2011 over 2010, and spending on repairs and remodeling possibly increasing about 5%.
Higher material costs are a key risk for the industry, the report noted, especially if there is no improvement in the unemployment rate. “It will be harder to pass on those costs to buyers,” the report stated. Infrastructure projects could help the industry, but the number of projects will vary by region, and some of it could be tied to pending legislation.
The entire report is available at globalcreditportal.com.