June contracts decrease 1 percentMcGraw-Hill Construction, a division of The McGraw-Hill Cos., New York, has reported construction starts decreased 1 percent in June. During the first six months of the year, total construction was up 4 percent compared with the same time period in 2011.
"Total construction activity had jumped in March and April, primarily because of the start of two massive nuclear power projects—$8.5 billion for work on Units 3 and 4 at the Vogtle nuclear power facility near Waynesboro, Ga., and another $8.5 billion for work on Units 2 and 3 at the Virgil C. Summer nuclear power facility near Jenkinsville, S.C.," says Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction. "Aside from the lift coming from this year's nuclear power projects, total construction activity during the first half of 2012 basically has shown a hesitant up-and-down pattern.
"On the plus side, gains are being reported for several commercial building categories, and the strengthening trend for multifamily housing now is being joined by moderate growth for single-family housing," he continues. "On the negative side, such institutional project types as educational buildings and health care facilities continue to weaken, along with further declines for several public works categories."
Nonresidential building construction fell 4 percent in June. In the commercial category, store construction increased 4 percent; warehouse construction grew 1 percent; manufacturing plant construction declined 10 percent; hotel construction fell 23 percent; and office construction dropped 31 percent. In the institutional category, amusement-related construction grew 43 percent; churches surged 41 percent; health care facility construction climbed 13 percent; educational buildings increased 4 percent; public buildings dropped 13 percent; and transportation terminal construction plunged 40 percent.
Residential building construction grew 1 percent in June. Single-family housing was unchanged, and multifamily construction increased 5 percent.
Nonbuilding construction was unchanged in June.
During the first six months of 2012, nonresidential building decreased 16 percent compared with the first six months of 2011. Residential building was up 25 percent, and nonbuilding construction increased 11 percent. By geographic region, the South Atlantic rose 50 percent; Midwest increased 6 percent; West fell 9 percent; and South Central and Northeast decreased 10 percent.
Date : 7/25/2012 12:00 AM