U.S. Construction Forecast July 09, 2007

Based on job-site activity levels through April 2007, Reed Construction Data (RCD) now expects total U.S. construction spending to be up +0.8% in 2007 versus +4.7% last year. (The total spending figure for 2007 has not been changed versus RCD’s previous monthly forecast.) Total residential investment (new and improvements) will decline -9.1% in 2007 (versus -1.8% in 2006) as housing starts will fall -14.4% this year (versus -12.9% last year). Non-residential building put-in-place investment is now expected to increase +13.9% in 2007 (versus +13.4% in 2006). Non-building (heavy engineering) work will grow +8.8% in 2007 (versus +13.0% in 2006.) Further ahead, RCD’s outlook for 2008 total construction spending now stands at +7.1% (down 0.2 percentage points from last month’s forecast).

Source:  Reed Construction Data

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