When Will a Loan Arranger Ride to the Rescue With Some Silver?

Developer-financed construction is shriveling. The latest monthly figures from the Census Bureau on construction spending show big downturns in May from April and from May 2008 in categories that typically rely heavily on bank financing. (The percentages are calculated from numbers that are seasonally adjusted, to account for normal month-to-month variation.) Private office construction spending eked out a gain of 0.1 percent from April but sank 18 percent from a year ago. Lodging sank 2.6 percent and 17 percent. Warehouse construction was off 6 percent and 36 percent. Retail construction was down 6 percent and 31 percent. Multifamily plunged 9.6 percent and 29 percent. These results are consistent with responses sent by Data DIGest readers in the past two months, who universally reported no improvement in credit conditions since the lending spigot was snapped shut last fall. In contrast, the municipal-bond market, which also was moribund in September, has come back to life. The American Recovery and Reinvestment Act included several new, expanded or extended bond provisions that have helped, notably "Build America Bonds." To report your experiences, good or bad, with bank, corporate or government financing, send an email to simonsonk@agc.org.