Dive Brief:

• It was a tough first quarter for the American economy, with a 2.9% contraction according to government data, but research firm Reed Business Information expects total construction spending in the U.S. to finish this year up 9.3%.
• Despite the lackluster start, the company said in its most recent forecast that an improving economy likely will encourage more investment in plants and equipment and thus boost the business of nonresidential and heavy engineering contractors.
• The forecast is based on an expectation that federal spending for infrastructure will start to rise in the fiscal year that begins Oct. 1, and public-private partnerships will help, too.

Dive Insight:

Reed Construction Data, the division that deals with the industry, said it expects that residential will continue to lead the industry, as it has since the recovery began. The company's estimate is for a 2015 increase in total construction spending of 11.2%.