Associated Builders and Contractors (ABC) predicuts 2012 will be a slow year for construction. The association released its 2012 economic forecast for the U.S. commercial and industrial construction industry which indicates that the New Year will be a year of gradual progress as advances in private construction are partially offset by ongoing declines in publicly financed construction, said Anirban Basu, ABC chief economist.

ABC is forecasting that nonresidential construction spending will increase 2.4 percent in 2012 following a 2.4 percent decrease in 2011. The association expects nonresidential building construction employment to increase 0.4 percent in 2012 following lackluster 0.6 percent growth in 2011. Contractors may see relief with respect to material prices, but Basu said ABC expects 2012 materials to rise 4.7 percent.

“For the most part, 2011 has been disappointing. However, recent economic news has been more positive, including data regarding the gross domestic product (GDP), business investment and exports,” Basu said. “If the U.S. economy continues to progress, eventually this will translate into more vigorous recovery in the nation’s nonresidential construction sector...Overall, ABC forecasts public nonresidential construction spending will slip 2 percent in 2012.”