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May contracts increase 7 percent

McGraw-Hill Construction, a division of The McGraw-Hill Cos., New York, has reported construction starts increased 7 percent in May. For the 12 months ending May 2009, total construction was down 25 percent compared with the 12 months ending May 2008.

"The pattern of construction starts during the past three months suggests that a bottom is being established," says Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction. "Single-family housing now seems to be leveling off after its lengthy correction, and public works is picking up speed with more to come, given the lift that's just beginning to emerge from the federal stimulus funding. This will be offset, however, by further weakness for nonresidential building involving its commercial, manufacturing and institutional segments."

Nonresidential building construction decreased 4 percent in May. In the commercial category, office construction climbed 51 percent; hotel construction rose 31 percent; warehouse construction grew 5 percent; and store construction held steady. In the institutional category, public buildings increased 51 percent; transportation terminals rose 37 percent; churches grew 27 percent; educational buildings decreased 8 percent; amusement-related construction dropped 23 percent; health care facility construction fell 35 percent; and manufacturing plant construction decreased 61 percent.

Residential building construction was essentially unchanged in May. Single-family housing increased 2 percent, and multifamily construction decreased 13 percent.

Nonbuilding construction climbed 28 percent in May.

For the 12 months ending May 2009, nonresidential building decreased 23 percent compared with the 12 months ending May 2008. Residential building was down 43 percent, and nonbuilding construction decreased 1 percent. By geographic region, the Midwest decreased 15 percent; South Central fell 16 percent; Northeast dropped 26 percent; West declined 31 percent; and South Atlantic dropped 34 percent.

6/17/2009  

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