CINCINNATI—US construction starts are expected to grow at a slower pace in 2018, moderating to 3% although forecast to grow annually at nearly 5% over the following four years, construction data firm ConstructConnect says in its Spring 2018 forecast. That's due partially to a normalization from several mega-projects started at the end of 2017.

The forecast is presented against a macroeconomic backdrop that includes a forecast of GDP growing to 2.8% this year from 2.3% in '17, as well as the advent of the new tax package and improving global trade.

A major factor in spending this year is expected to be infrastructure upgrades; the Trump administration reportedly will announce its scaled-down plan for public/private partnerships this coming week. “Nobody doubts the urgent need for upgrades to the nation's public works inventory,” says ConstructConnect chief economist Alex Carrick. “Recognizing that states and municipalities are taking the lead with infrastructure, we are forecasting increases of 6.9% for road starts and 9.0% for bridge starts in 2018.”