Electrical contractors see market decline

Analysts are watching spending on school, hospital, and transportation construction.

Source: Associated Press

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According

to a story by the Associated Press , commercial markets

for electrical mechanical contractors, particularly in the office and

hospitality sectors, remain under pressure and could continue to weaken next

year, an analyst said July 9.

Analyst

Tahira Afzal of KeyBanc Capital Markets said although public nonresidential

spending "remains largely intact as of now, we are seeing a more mixed

outlook on the institutional side."

She

said she is watching spending on school, hospital, and transportation

construction, and that slower stimulus spending is more of a concern now than a

few months ago. In addition, commercial vacancies are expected to become worse,

limiting speculative construction of offices, she said.

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