In a broad sense, total construction has stabilized at the current dollar amount achieved in 2001, a report from McGraw-Hill states.

In a broad sense, total construction has stabilized at the current dollar amount achieved in 2001, although next year's drop may be greater should the economy falter, according to Robert Murray, chief economist of McGraw-Hill Construction, part of the McGraw-Hill Companies.

"Interest rates are currently very low, yet some upward movement may take place in 2003 as a result of strengthening business conditions, or possibly a spike in oil prices related to events in Iraq. And, the current economy is beginning to look similar to the jobless recovery of the early 1990s, with firms continuing to cut costs and postpone additions to staff. Assuming employment growth remains tepid through 2003, there will be little growth in the demand for commercial space, and little incentive to pick up the pace for commercial construction," Murray said.