SUMMARY: Commercial Slump Slams Prices

While many economists still predict a quick recovery for the overall US economy, the outlook for construction is less clear. A deepening downturn in the nonresidential building market threatens to overshadow bright homebuilding and public works sectors. Through April, nonresidential building work had fallen 16% behind the first four months of last year, including year-to-year declines of 41% for industrial, 29% for office, 24% for hotel and 4% for commercial building construction. The slump in nonresidential building work has pulled prices for several materials below last year's level and has contractors trimming margins to gain work.