Our view for a slowdown in the residential and non-residential construction industry is playing out, as residential construction levels normalize and investor sentiment wanes. As such, we are forecasting a deceleration in real growth for the US construction industry - -.- in ---- and -.- in ----. After a very strong Q-, industry value put in place has dropped off significantly - falling from a y-o-y monthly growth rate of --.- in Q- to just -.- in July. However, we expect growth to remain positive as a number of key factors are poised to sustain growth across several infrastructure segments: The five-year surface transportation bill, the Fast Act, will increase federal spending by -.- annually from base levels through to ----; additionally, the bill will provide the budget clarity required by state and local governments to move forward on projects. Transport, as well as social infrastructure, will also benefit from increasing private sector investment - especially via the PPP model - as more and more states increasingly look to utilize the model, federal programs facilitate credit, and institutional investors move to increase the share of infrastructure in their portfolios. ...Democratic nominee Hillary Clinton has announced a USD---bn infrastructure spending plan; on the other hand, while his policies remain less clear, the Republican nominee, Donald Trump, has alluded to a USD-trn plan or at least double Clinton s plan. If successfully turned into law, the provisions included in the Energy Policy Modernization Act will create a regulatory framework conducive to strengthening, modernizing and expanding the country s electricity grid - something that we have long highlighted as crucial for the growth of the US power sector.
...Value put in place in the US construction industry has begun to drop off after a strong Q-, aligning with our view for a slowdown. We forecast -.- real growth for ----, which will slow to -.- in ----. ...We forecast -.- real growth for ----, which will slow to -.- in ----. The Fast Act, a five-year surface transportation bill passed in December ----, will help drive transport infrastructure growth by increasing federal spending (average of -.- increase annually over next five years) and giving state and local governments budget clarity. We also highlight potential upside to our forecasts: Both candidates in the November election have pledged to support infrastructure, posing upside potential to our forecasts. Democratic nominee Hillary Clinton has announced a USD---bn infrastructure spending plan; on the other hand, while his policies remain less clear, the Republican nominee Donald Trump, has alluded to a USD-trn plan. If successfully turned into law, the provisions included in the Energy Policy Modernization Act will create a regulatory framework conducive to strengthening, modernizing and expanding the country s electricity grid - something that we have long highlighted as crucial for the growth of the US power sector.
...Cheap shale oil and gas has opened up domestic opportunities to capitalise on new resources, including new gas-fired power plants, industrial construction and oil and gas pipelines. A growing number of public-private partnerships could provide for a greater opening up of the country s infrastructure to private sector participation. ...
