...Global Recovery To Drive Profitability: Fitch expects a global recovery in construction markets and financial optimism into 2019, although far from pre- crisis highs. We forecast growing corporate profitability, as cost-cutting and price increases more than offset cost inflation. In particular, we expect good prospects for US and European markets, although growth is moderating in the US from previous years. Improving leverage and low financing costs motivate generous shareholder returns and a hunt for growth, and finding the right balance between these goals and balance sheet strength will be key. Moderation In The US: After six years of solid growth in overall construction spending, the construction cycle is maturing and the sector is poised for more moderate growth through to the end of 2018. We expect a healthy level of overall construction activity, based on continued improvement in residential construction, including home improvement spending, while growth in commercial construction...
