October contracts decrease 9 percent
McGraw-Hill Construction, a division of The McGraw-Hill Cos., New York, has reported construction starts decreased 9 percent in October. In addition, during the first 10 months of 2008, total construction was down 15 percent compared with a year ago.
"As shown by October's pattern, this year's declining activity for housing has broadened
to include other project types," says Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction. "The tight lending environment has grown even tighter with this fall’s turmoil in the financial markets, and we have yet to see its full impact on the commercial and institutional structure types, as well as public works. That impact will become more apparent in coming months. On the plus side, a second federal stimulus package may contain funding for infrastructure work, which would help to cushion the expected slowdown for public works next year."
Nonresidential building construction decreased 9 percent in October. In the commercial category, manufacturing plants experienced a 69 percent drop; store construction fell 20 percent; warehouses increased 41 percent; office construction grew 5 percent; and hotel construction grew 2 percent. In the institutional category, amusement-related construction decreased 51 percent; educational buildings fell 14 percent; churches dropped 14 percent; public buildings fell 7 percent; health care facilities grew 41 percent; and transportation terminals were up 23 percent.
Residential building construction fell 10 percent in October. Single-family housing declined 11 percent, and multifamily construction dropped 10 percent.
Nonbuilding construction decreased 6 percent in October.
During the first 10 months of 2008, nonresidential building was unchanged compared with the same time period in 2007. Residential building was down 38 percent, and nonbuilding construction increased 2 percent. By geographic region, the Northeast dropped 1 percent; South Central fell 1 percent; Midwest fell 11 percent; South Atlantic dropped 25 percent; and West declined 28 percent.
11/24/2008