An already pessimistic outlook for overall construction activity in 2008 is becoming darker, according to a midyear update of McGraw-Hill Construction's forecast. A weaker economy, stronger inflation and tighter credit markets have deepened the housing recession and now threaten to impact several commercial building markets, says Robert Murray, chief economist for McGraw-Hill Construction, of which ENR is a unit. Last October, when the forecast was released, Murray expected the dollar value for all construction starts to slip 2% this year, after falling 9% during 2007. Now he is calling for an 11 % decline in 2008 (see table above).
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