The construction economy is benefiting from the strength of the overall economy, which will rise 3 to 3.5 percent in 2001, Toal said.
“With the technology bursts we are getting, unless something really broadsides us, I see continued economic growth at a moderate pace as far as the eye can see,” he said. “Spending on information processing equipment and software has gone from literally nothing in the 1970s, to about 2 percent of GDP in the early ’90s, and now is hitting 6 percent of GDP. As a result, labor productivity, stuck at a sluggish 1-percent growth rate for years, is rising at 4 to 5 percent a year. The gains have translated to slowing unit labor costs, which have actually declined over the past year. As a result, inflation has remained low despite 115 months of unprecedented expansion.”
This information has been supplied by the CMD Group.