Construction levels in the US are set to fall on the back of the nations declining housing market.

A report released by McGraw-Hill Construction reveals that overall construction spending in 2007 will fall for the first time since 1991. The company says the value of new construction will decline 1% in 2007 to $668bn, compared with an expected rise of 1% for 2006 and a 12% increase in 2005.

McGraw-Hill reports that the anticipated decline was due mostly to a 5% fall in construction of single-family homes. But the overall drop also reflects a 3% slide in construction of stores and shopping centres.
Robert Murray, vice president at McGraw-Hill, said: "Single-family housing has fallen more steeply than what we had anticipated and the correction is taking place faster."