JOIN | Home | Contact | Print | E-mail | Español

June contracts decreased 5 percent

McGraw-Hill Construction, a division of The McGraw-Hill Cos., New York, has reported construction starts decreased 5 percent in June.

"The construction industry is seeing a transition in 2006," states Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction. "From 2001 through 2005, single-family housing had been the primary source of expansion for total construction, but that’s changed as the first half of 2006 clearly shows single-family housing cooling down. At the same time, the upturn for nonresidential building has gained momentum in 2006 as improved market fundamentals have encouraged further development, even amidst the difficulties arising from the higher cost of materials. In addition, greater federal spending and the improved fiscal position of the states have contributed to more public works construction this year."

Nonresidential building construction dropped 4 percent in June. In the commercial category, store construction fell 22 percent; office declined 6 percent; and warehouses trailed 1 percent. Hotel construction surged 138 percent, and manufacturing building rose 4 percent. In the institutional category, health-care facilities plunged 39 percent; amusement-related construction decreased 36 percent; and educational building slipped 14 percent. Public buildings rose 7 percent; churches climbed 10 percent; and transportation terminals soared 141 percent.

Total construction activity in June was 7 percent higher than the corresponding amount during 2005. Residential building construction increased 1 percent, and nonbuilding construction rose 13 percent. Nonresidential building jumped 17 percent. West increased 13 percent; South Central grew 12 percent; Midwest climbed 4 percent; South Atlantic advanced 2 percent; and Northeast rose 1 percent.

7/31/2006  

Comments (0) Login to post a comment

There are no comments posted.