Highlights of FMI's report include:
- An expectation that the Fed will find it prudent to raise interest rates yet another time or two in the next two or three quarters.
- The economy will continue to drift downward and will execute a soft landing about midyear 2001, at which time it will begin a rather energetic rebound.
- Single-family housing construction will experience modest growth over the next two years. Single-family housing starts will decline from 1999 levels by 2% in 2000 and another 4% in 2001.
- Educational construction will continue its recent boom with predicted growth of 14% in both 2000 and 2001.
- In the non-building sectors, utility structures will leap 15% and highway construction will increase 7% in 2000 and will continue to grow in 2001.