Based on job-site activity levels through September 2007, Reed Construction Data (RCD) now expects total U.S. construction spending to be down -2.2% in 2007 versus +5.3% last year. Total residential investment (new and improvements) will decline -16.4% in 2007 (versus -0.1% in 2006) as housing starts will fall -23.8% this year (versus -12.9% last year). Non-residential building put-in-place investment is now expected to increase +16.3% in 2007 (versus +12.7% in 2006). Non-building (heavy engineering) work will grow +11.9% in 2007 (versus +11.5% in 2006). Further ahead, RCD's outlook for 2008 total construction spending now stands at +5.7%.

For more information, please see Construction Outlook Weakens Due to Second Round of Credit Tightening.

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