AGC: Credit freeze, economic slump chill construction
"Nonresidential construction is on the verge of a potentially long slide," warned Ken Simonson, chief economist, Associated General Contractors of America, Washington, D.C., in a Nov. 3 Data DIGest article. Simonson's comments followed reports from the Census Bureau on construction spending in September and the National Association for Business Economics, Washington, D.C., on third-quarter and expected activity.
"The Census figures show nonresidential spending eked out a gain in September of 0.1 percent," Simonson noted. "But private nonresidential spending was down nearly 1 percent from its high-water mark in June, while public spending tumbled 1.3 percent in September alone.