Thursday, October 25, 2007

WSJ: Commercial Construction May Slow

By Alex Frangos
The pace of U.S. commercial-construction activity -- which had remained strong despite a sharp contraction in housing -- is showing signs of slowing and could drop next year for the first time since the early part of the decade, the latest sign that companies are turning cautious about the economy's prospects.

In a closely watched report expected to be released today, McGraw-Hill Construction will forecast that spending on commercial and manufacturing buildings, such as offices, warehouses and hotels, will decline 7% next year, in dollar volume, and 10% in the number of square feet of space built.

Well so much for the hope instilled by all of those 3rd quarter earnings reports.

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