While much of the economy started to show signs of improvement, the construction sector continued to struggle in the fourth quarter of 2009. At best, it appears that the rate of decline is decreasing in most markets, particularly in the hardest hit states. Only one state, North Dakota, is showing any growth, and that is a weak 1.7% annualized.  Arizona and Nevada continue to be the most severely impacted markets, with declines of around 25% annualized, both having shed over 40% of their peak construction work force of 2006.

Altogether a total of nearly 1.9 million construction jobs have been lost since the peak monthly employment in the summer of 2006, and over 1.7 million on a seasonally adjusted basis. Total construction spending for 2009 is down sharply, with an annualized estimate of roughly $948bn, some $124bn below 2008. Year to date spending through November 2009 is $126bn less than year to date in November 2008.  While the structural economic fears that were present in the fourth quarter of 2008 have now largely abated, it is clear that the construction markets remain extremely weak, and there is little prospect of a return to growth in any region or sector for some time to come.