December 16, 2005—CIT Construction, a unit of CIT Group Inc., has announced the results of the 30th annual CIT Construction Industry Forecast. The 2006 outlook indicates that for the third year in a row, US construction industry leaders anticipate a strong year ahead, yet remain cautious. Regionally, two of the nine US regions surveyed show an increase in confidence while three additional remain optimistic.
CIT Construction is one of North America’s leading providers of financial services to the construction industry.
Now in its 30th year, the CIT Construction Industry Forecast independently surveys US construction executives on their perceptions of the state of the industry and trends for the coming year. Over 900 contractors and equipment distributors were surveyed via telephone interviews across the country. The Optimism Quotient (OQ) is the Forecast’s primary indicator for assessing and comparing the respondents’ level of confidence in the health of the construction industry. The OQ is a weighted and averaged number that expresses construction executives’ perceptions of the industry’s prospects for the coming year. Generally, a number of 100 or higher indicates strong optimism in the industry’s one-year outlook while a number below 100 indicates a more cautious projection.
The 2006 Construction Industry Forecast’s overall optimism quotient fell seven points—from last year’s 109 to 102—but it continues to indicate a positive outlook for the coming year. The OQ for distributors dipped three points to 115 while contractors also exhibit a decrease in their optimism, evident from an 11 point decline in OQ levels to 89.
For more information, visit the CIT Web site.
