CHICAGO--(BUSINESS WIRE)--Link to Fitch Ratings' Report: 2015 Outlook: U.S. Building and Home
Products and Services (Good Demand Prospects Driven by Growth in Private
Continued growth in overall construction spending, particularly from the private sector, reinforces the stable outlook for the U.S. building materials industry in 2015, according to Fitch Rating's annual outlook report for the sector.
Fitch projects construction spending will expand 7% next year, driven primarily by continued robust spending in the private sector. Public construction spending remains constrained and is expected to increase only slightly next year.
Additionally, Fitch expects revenue growth to average 8%-10% for building materials companies in 2015, driven by organic growth as well as acquisitions completed this year. That coupled with the sector's projected growth in margins and slightly lower debt levels should lead to modest improvement in credit metrics.
That said, 'The modest recovery in the U.S. construction market and our expectation of a moderate improvement in credit metrics are generally factored into the current ratings and outlooks,' said Robert Rulla, Director.
Fitch's '2015 Outlook: U.S. Building and Home Products and Services' report is available at 'www.fitchratings.com' or by clicking on the above link.
Additional information is available at 'www.fitchratings.com'.