A CNBC article stated that U.S. private construction is expected to grow this year for the first time since 2005, according to a report by investment firm AllianceBernstein, and will be an important driver of gross domestic product growth and job creation in the coming year.
In the report, U.S. economist Joseph Carson predicted private construction spending this year will reach nearly $10 billion, based on data available from the first three quarters of 2011.
“We believe that the small gain marks a significant turn for the U.S. economy,” Carson said, adding that in 2012, real private construction activity will expand by around seven percent.
New contracts for the nonresidential sector rose by 36 percent in October, according to the FW Dodge Construction Contract Index, which measures the value of new construction contracts. The increase was largely driven by manufacturing construction, with office and warehouse construction also posting strong gains.
“Construction activity is highly correlated with job creation and unemployment, because the construction sector is a cyclical industry, " he said. "When it does well, the general economy tends to perform well, too."