Engineering News-Record today reported that an overall decline in construction starts in the United States is more dire than predicted. McGraw-Hill Construction estimates that the industry experienced an 8% decline in construction starts in 2007. Another 2% drop is forecast for 2008.

Total construction reached a record $668.9 billion in starts in 2006, and values are expected drop to $626.7 billion for 2007 and $614.1 billion in 2008. Last year, McGraw-Hill Construction predicted that starts in 2007 would drop 1%, despite the weaking single family home market.

Turmoil in the sub-prime mortgage market has been a major concern for the construction industry and the overall economy. Tighter lending conditions  will impact both residential and commercial development.

Some positive trends are still seen in public works projects and school construction.