Construction in the state was up in 1988 but will be down this year, according to the Construction Industry Research Board.
In 1988, construction totaled $44.88 billion, up 11.6% from 1987, adjusted for inflation. The 1989 forecast is for a decline of 12.5%, to $39.26 billion.
The board said the 1988 increase was due, in part, to several large projects in the nonresidential and heavy construction sectors and high housing permit activity in areas where growth-control measures appeared on election ballots.
The predicted decline in 1989 is seen as an adjustment following "unusually high" 1988 activity and as a reflection of anticipated increases in interest rates. Additionally, sewer capacity shortages in the Los Angeles area will restrict building.
Construction employment averaged 607,000 in 1988, up 5.6% from 1987. A 0.5% is foreseen for 1989, mainly because of the time lag between building permit issuance, or contract award.