The
Fed stated, “Manufacturing capacity
is estimated to increase 2.1% in 2008, the same amount as in 2007. In 2008,
mining capacity is estimated to expand 0.7%, and utilities capacity is
projected to rise 1.9%; both rates of increase would be slightly faster than
for last year.” IP of construction supplies slumped 1.1%, reversing a 1.1% gain in
December. The Fed noted, “production in January was 1.2% below its year-earlier
level and about 4% below its peak in 2006.” Manufacturing construction rose 9% in 2007, the Census Bureau reported
on February 1.
Communication construction soared 21% in 2007, and 6.0%, seasonally
adjusted, from November to December. One driver is data centers. The Washington Post
reported on February 3, “In Northern
Virginia, for instance, 22 computer data centers have been built, and 24 more
are on the away, according to Dominion [Energy]. Those hives of computer
servers are often the size of a small Wal-Mart, and the company says they use
about 25 times as much power.” The power
usage is also contributing to demand for power plant and transmission construction.