Slow recovery in construction markets takes hold by mid-year. (Economic & Financial Indicators)

In contrast to the recession-like weakness in residential building markets, nonresidential construction spending continued to rise modestly throughout most of 1990. However, the sharp declines in consumer and business confidence which followed the Iraqi invasion of Kuwait, combined with the worsening "credit crunch," took their toll during the final third of the year. By year's end, inflation-adjusted spending on multifamily residential buildings had fallen 17.4 percent below the year=earlier level, while total nonresidential spending eked out a slight 1.3 percent gain.