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Shifting Economic Sands Challenge Construction Spending

Published Wednesday, October 01, 2008

As banks continue to curtail the availability of financing, a slowdown in commercial real estate construction spending appears inevitable. After gaining an average of 2% per month for the first seven months of the year, total spending in nonresidential construction was up a mere 0.2% in July, according to a Census Bureau report. And according to the August figures released by the government, nonresidential construction spending contracted 0.1% in August, compared to July. Sam Chandan, chief economist for New York-based research firm Reis, sees the slowdown in construction spending growth as an imminent consequence of softening demand for ...

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