As the overall U.S. economy continues to struggle, nonresidential construction spending is expected to decrease by 11 percent in 2009 in inflation adjusted terms.

Commercial projects including office buildings and retail establishments will see the most significant decrease in activity. On the positive side, prices have dropped for key construction commodities. These are highlights from the American Institute of Architects (AIA) semi-annual Consensus Construction Forecast, a survey of the nation's leading construction forecasters.

"As profits for businesses have fallen and the ability to get credit to finance projects has become far more difficult, construction plans have been put on hold or canceled outright in recent months," said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. "This is not expected to turn around anytime soon and it's likely to get worse before it gets better."

"The downturn in nonresidential activity has helped stabilize construction costs," Baker added. "For example, prices for steel, gypsum products, lumber and cement have all come down recently which makes taking on projects more attractive to developers."