Constructions Starts Continue Slide November 5 th, 2007
An industry giant predicts that construction starts will continue to decline in 2008.
McGraw-Hill Construction has predicted an overall decline of 8 percent in construction starts by the end of 2007, with another 2 percent drop forecasted for 2008, according to an article in Engineering News-Record.
The reality of the market is more dire than McGraw-Hill predicted only a year ago. The corporation had predicted that 2007 starts would drop only 1 percent, with the single-family home market weakening and other sectors, such as institutional work, remaining steady.
However, turmoil in the sub-prime mortgage market created a major concern for the construction industry and the nation’s economy, says Robert A. Murray, vice president of economic affairs at McGraw-Hill Construction.
“As a result, we’re now predicting downturns in the previously resilient multifamily and commercial segments, as well as continued weakness in single-family home construction," he said.
Single-family home construction remains the main drag on overall construction starts with a 25 percent plunge estimated in 2007. Declines will continue, but could ease considerably in 2008 with dollar volume expected to decline an additional 3 percent, according to a report from McGraw-Hill Construction.Other findings of the report note that:
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