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Federal Infusion Will Not Prevent Infrastructure Spending Falloff

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Infrastructure spending is expected to decline 4.3% in 2009 despite the federal stimulus boost, says market analyst IHS Global Insight, Lexington, Mass. It attributes the projected falloff to state deficits and municipal funding shortfalls. The analysis projects a spending decline of 1.6% in 2010 and then a 2.4% increase the next year “as tax receipts improve and the federal stimulus is fully implemented.” IHS Global Insight projects power spending will increase by 1% this year but that “slumping demand” will reduce sector spending by 16% in 2010.

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