In its 2007 Construction Outlook Midyear Update, McGraw-Hill reports that new construction is pacing $641.4 billion, or 6 percent below the 2006 level;
CP STAFF
In its 2007 Construction Outlook Midyear Update, McGraw-Hill reports that new construction is pacing $641.4 billion, or 6 percent below the 2006 level; single-family housing activity remains in decline, with renewed expansion not expected until 2008 at the earliest; the dollar value in institutional buildings is on pace for a 7 percent gain, owing to public building and education and healthcare facility work; and, commercial office work continues to rise.
With recent credit market volatility, McGraw-Hill Construction predicts that the single-family housing downturn will be prolonged and deepening. However, the overall construction market this year continues to enjoy support from such funding mechanisms as healthy state and local government finances, plus federal appropriations. Additional monies are expected for infrastructure, as the Interstate 35W bridge collapse in Minneapolis spotlights the need for greater transportation funding.
More 2007 market insight will be provided at McGraw-Hill Construction’s 69th Outlook Executive Conference; details on the Oct. 24-25 event in Washington, D.C., can be obtained at www.construction.com/event/Outlook2008/default.asp.