Economic Outlook for Construction Mixed

Stalled U.S. economy weakens some sectors

In its latest economic report, McGraw-Hill states that commercial building categories that had strengthened somewhat in 2006 and 2007 will weaken during 2008 with fewer new construction starts. The institutional building sector will stay even with 2007 and public works will register slight growth, especially in the area of infrastructure maintenance, which could be good news for coatings contractors. For 2008, the overall level of construction starts in current dollars will fall another 5% to 8%, after the 10% decline that was reported for 2007.

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