In its 2007 Construction Outlook Midyear Update, McGraw-Hill Construction reports that new construction is pacing $641.4 billion, or 6.0% below the 2006 level; single family housing activity remains in decline, with renewed expansion not expected until 2008 at the earliest; the dollar value in institutional buildings is on pace for a 7.0% gain, owing to public building and education and healthcare facility work; and, commercial office work continues to rise.

With recent credit market volatility, McGraw-Hill Construction projects that the single family housing downturn is expected to be prolonged and deepened. However, the overall construction market this year continues to enjoy support from such funding mechanisms as healthy state and local government finances, plus federal appropriations. Additional monies are expected for infrastructure, as the I-35W bridge collapse in Minneapolis sheds light on the need for greater funding.

More 2007 market insight will be provided at McGraw-Hill Construction's 69th Outlook Executive Conference; details on the Oct. 24-25 event in Washington, D.C., can be obtained at www.construction.com/event/Outlook2008/default.asp.