Construction output oudid our expectations and grew by 0.7% in July. Adjusted for working days (a dubious concept in construction), it grew by 2.0%. As the number of workers shrunk, the productivity rose by 5.0%. As wages grew by 2.5% nominally, wage costs are falling, a good news for construction firms.
Overall, there is little new information in the numbera nd we do not change our forecast of a 2% gowth in the construction sector in 2000.