July contracts decrease 10 percentMcGraw-Hill Construction, a division of The McGraw-Hill Cos., New York, has reported construction starts decreased 10 percent in July. During the first seven months of the year, total construction was up 4 percent compared with the same time period in 2011.
"The construction industry is struggling to gain upward traction as construction starts continue to exhibit an up-and-down pattern," says Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction. "The public works and institutional building sectors still are being adversely affected by the tough fiscal climate facing the federal, state and local levels of government. Commercial building, which seemed to be in the early stages of recovery, is seeing its faint upturn become more tenuous with the sluggish employment picture.
"The upward potential for housing in the near term also is being dampened by the persistently hesitant U.S. economy," he continues. "Overall, the construction industry remains stuck for now in an extended process of turning the corner."
Nonresidential building construction fell 7 percent in July. In the commercial category, hotel construction climbed 13 percent; store construction increased 6 percent; office construction grew 4 percent; warehouse construction was unchanged; and manufacturing plant construction declined 31 percent. In the institutional category, transportation terminal construction surged 50 percent; public buildings climbed 1 percent; churches declined 10 percent; health care facility construction decreased 10 percent; educational buildings fell 12 percent; and amusement-related construction dropped 13 percent.
Residential building construction fell 6 percent in July. Single-family housing increased 1 percent, and multifamily construction decreased 25 percent.
Nonbuilding construction fell 18 percent in July.
During the first seven months of 2012, nonresidential building decreased 15 percent compared with the first seven months of 2011. Residential building was up 25 percent, and nonbuilding construction increased 7 percent. By geographic region, the South Atlantic rose 42 percent; Midwest increased 5 percent; South Central dropped 7 percent; West fell 8 percent; and Northeast decreased 11 percent.
Date : 8/29/2012 12:00 AM