A drop in commercial construction, fueled by tighter lending and weaker job growth was cited by the McGraw-Hill 2008 Construction Outlook. "The credit crunch that emerged at mid-2007 continues to be a major concern for construction and the overall economy," says Robert A. Murray, Vice President, Economic Affairs, McGraw-Hill Construction.

Business has been good in the multifamily and commercial segments, even though single-family home construction has been in the pits.

“As a result, we're now predicting downturns in the previously resilient multifamily and commercial segments, as well as continued weakness in single-family home construction, predicts McGraw Hill Construction."

The forecast wasn’t all bleak. Transportation projects are expected to grow moderately, including infrastructure maintenance and upgrades, particularly in the aftermath of the bridge collapse in Minneapolis.

Institutional building, including school construction, is expected to strengthen again after its 2007 pause, and positive growth in transportation terminals is also anticipated.