Credit trickle slows construction | www.tennessean.com | The Tennessean: "Local cities and counties are delaying millions of dollars in bond issues, waiting for municipal debt markets to calm down. Meanwhile, some local businesses are putting off expansions or new construction projects because of trouble getting loans.
Despite actions taken in recent weeks by the federal government to head off a deeper economic crisis, the impact of the credit meltdown still is being felt on Main Street."
The ability to borrow money is central to construction, from single family home improvements to government buildings. The article talks about cities relying on reserves or delaying projects, but if things don't loosen up there will be cancellations.