2008 Construction Starts Estimated at $558.5 Billion, Down 11%, McGraw-Hill Construction Reports

McGraw-Hill Construction Releases the 2008 Construction Outlook Midyear Update

NEW YORK, NY (June 16, 2008) – McGraw-Hill Construction, part of The McGraw-Hill Companies (NYSE: MHP), has released its annual Construction Outlook Midyear Update, providing insight into the performance of the construction industry through the end of 2008.

The major findings of the forecast, authored by Robert Murray, vice president of economic affairs for McGraw-Hill Construction, include:

• New construction starts for 2008 are estimated at $558.5 billion, down 11%.
  
  
• Single family housing continues to weaken, with 2008 declines of 28% in dollar volume and 31% in dwelling units, steeper than what occurred in 2007.  The single family market is being adversely affected by falling home prices, mounting inventories, and tight lending conditions.
  
  
• Commercial building witnessed further expansion in 2006 and 2007, which carried over into the first quarter of 2008.  However, the slower economy and tighter lending conditions are now causing projects to be deferred, and the loss of momentum will take firmer hold as the year proceeds.  For 2008, commercial building will retreat 8% in dollar volume and 16% in square feet.  Stores and warehouses are the most vulnerable to decline in the near term, while lesser reductions are anticipated for hotels and office buildings.
  
  
• Institutional building in 2008 continues to see a strong amount of educational structures reach groundbreaking, helped in particular by more expansion for colleges and universities.  The 2008 forecast for institutional building calls for a 2% gain in dollar volume, although square footage will settle back 3%.
  
  
• Public works construction in 2008 will also rise 2% in dollars.  The push will come from greater federal funding for transportation projects in fiscal 2008, combined with an elevated focus on infrastructure repair and maintenance.  Tighter fiscal conditions at both the federal and state levels of government are an emerging concern for the public works sector, but any restraint on construction is more likely to be experienced next year.

For more information on McGraw-Hill Construction’s 2008 Midyear Update, visit http://construction.ecnext.com/coms2/summary_0249-283822_ITM_analytics.

About McGraw-Hill Construction
McGraw-Hill Construction connects people, projects and products across the design and construction industry. For more than a century, the Company has remained North America’s leading provider of construction project information, plans and specifications, product information, industry news, and industry trends and forecasts. In print and online, the Company offers a variety of tools, applications, and resources that easily integrate with its customers’ workflows. Backed by the power of Dodge, Sweets, Architectural Record, Engineering News-Record, GreenSource and 11 regional publications, McGraw-Hill Construction serves more than one million customers within the $4.6 trillion global construction community. To learn more, visit www.construction.com.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands including Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2007 were $6.8 billion. Additional information is available at www.mcgraw-hill.com.

Media Contacts:
Kathy Malangone
McGraw-Hill Construction
212-904-4376
kathy_malangone@mcgraw-hill.com