Ceramic Industry News / Glass / Market Trends

Construction Expenditures in China to Grow 8.5% Annually

Construction expenditures in China are expected to rise 8.5% per year in real terms through 2017, according to a new report from The Freedonia Group Inc. Ongoing urbanization and industrialization, rising income levels, further population and household growth, as well as the government’s continuing efforts to expand and upgrade physical infrastructure in the country, are expected to support healthy growth in construction spending. However, growth will moderate notably from the 16% annual gains during the 2007-2012 period, when gross fixed capital formation was boosted by the government’s stimulus program to counter the global financial crisis in 2009. This program ended in 2011, and increases in construction spending (along with fixed investment) will see a significant slowdown.

Construction expenditures in China are nearly equally split among residential buildings, nonresidential buildings and nonbuilding structures. Each of these segments accounted for around one-third of the total construction market in 2012. Nonbuilding construction will see the fastest growth, advancing 9.2% annually in real terms through 2017. Increases will benefit from state-led efforts to expand and upgrade the country’s transportation infrastructure. Utilities construction will also contribute to nonbuilding construction spending gains, particularly in fast-growing urban areas, as the government continues to expand and improve access to such infrastructure as water supply, sewage treatment, garbage disposal, and gas distribution. Additional efforts to increase the country’s power generation capacity and improve electricity transmission networks will also drive spending on nonbuilding construction in China through the forecast period.

Inflation-adjusted nonresidential building construction expenditures are forecast to rise 8.4% per year through 2017. Growth will reportedly be led by strong gains in industrial building construction. The manufacturing sector in China will continue to expand quickly, benefiting from robust increases in consumer spending for manufactured goods, accommodative government policies, and foreign direct investment. Spending on residential buildings is projected to grow at an annual pace of 8% in real terms through 2017. Market gains will be primarily driven by continuing population migration from rural to urban areas and supported by rising personal income levels.

For additional information, visit www.freedoniagroup.com

Did you enjoy this article? Click here to subscribe to Ceramic Industry Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

June 2014 Issue Highlights

Our June 2014 issue is now available!

Podcasts

Manufacturing Day 2014

Manufacturing Day organizers share their insights with Managing Editor Kelsey Seidler.

More Podcasts

Ceramic Industry Magazine

CI October 2014 cover

2014 October

Materials advances, refractories and renewable energy - oh, my! Check out our October issue today!

Table Of Contents Subscribe

THE CERAMIC INDUSTRY STORE

M:\General Shared\__AEC Store Katie Z\AEC Store\Images\Ceramics Industry\handbook of advanced ceramics.gif
Handbook of Advanced Ceramics Machining

Ceramics, with their unique properties and diverse applications, hold the potential to revolutionize many industries, including automotive and semiconductors.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Directories

CI Data Book July 2012

Ceramic Industry's Directories including Components, Equipment Digest, Services, Data Book & Buyers Guide, Materials Handbook and much more!

STAY CONNECTED

facebook_40px twitter_40px  youtube_40pxlinkedin_40google+ icon 40px