CHICAGO—There are numerous signs that the US economy is not ready to truly take off this year and fully recover from all the damage done by the financial crisis of 2008. But in a new report, Fitch Ratings says that while US nonresidential construction will increase by a modest 2% in 2013, the coming year could show a significant improvement. The agency noted that some institutions have become somewhat more comfortable with lending, and that this will help boost nonresidential construction by 5% in 2014.
In addition, CMBS issuance has also increased, even though the pace of originations remains far below what the market saw in record-setting year of 2007.
“Institutions will continue to be selective in their lending activities in the near term, which will likely moderate growth in the commercial construction,” says Robert Rulla, a Chicago-based director in Fitch's corporate finance group.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
