The US economy and hence the construction market is in a sweet spot in mid 2009. The automatic recession correction mechanisms are working quickly to trim costs and inventory enough to return to growth in aggregate spending within a few months. Yet spending, here and elsewhere, remains depressed enough so that the recent worldwide reduction in credit availability is not yet restraining aggregate spending. But a credit constraint that restrains spending growth is likely to appear as soon as yearend and certainty by mid-2010.

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