Michael Moore / ENR

The fallout from the growing financial crisis triggered by the nation's sub-prime mortgage debacle will spread into the industry's construction cost indexes in 2008. The lingering recession in housing will undercut lumber and cement prices. Steel prices will slip as a credit crunch dampens enthusiasm in the nonresidential building markets. With prices falling, inflation will take a step back.

Related Links: Inflation Bows to Sub-Prime Crisis Inflation Cools in China, West Europe, U.S. EU Membership Brings New Cost Challenges Parity Index Adjusts For Exchange Rate Swings Oil Sands Boom Extracts Toll on Costs Complete Report with Data and Analysis