The economy will support growth in the construction industry in 2007, although it will slow gradually over the year, according to Jim Haughey, director of Research and Analytics for Reed. Haughey’s detailed review of construction growth in various sectors and his projections for 2007 was published in Building Design & Construction.

Spending on nonresidential construction expanded by 16% during the year ending September, but has currently slowed to 11-12% and will slow further to 8% by the end of 2007. The slowdown results from the plunge in residential building last year and the slowdown in overall economic growth due to cautious consumer spending.

2006 quick stats:

• The condo market plunged more than the single-family market
• Shopping center expansion continued
• Office construction spending surged last summer, up 11%
• Manufacturing construction spending jumped 20%
• Hotel construction soared 52%
• Education construction spending increased 6.5% with all gains near the end of the year
• Healthcare construction spending growth doubled to 15%