November contracts decrease 11 percentMcGraw-Hill Construction, a division of The McGraw-Hill Cos., New York, has reported construction starts decreased 11 percent in November. For the first 11 months of 2011, total construction was down 2 percent compared with the same period in 2010.
"The strong volume in October, with total construction starts climbing 12 percent, was not likely to be sustained given the fact that much of the lift came from the start of several unusually large projects," says Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction. "In November, activity returned close to its average pace so far in 2011, which essentially is the same as what was being reported during the previous two years.
"The picture for construction starts in a broad sense continues to be stability at a low level, with renewed expansion not yet taking hold," he continues. "By individual project types, however, there has been a varied pattern during 2011. Year-to-date gains have been reported for multifamily housing, manufacturing plants, electric power plants and even some commercial building types, but this has been offset by further weakening for single-family housing, institutional building and public works."
Nonresidential building construction decreased 20 percent in November. In the commercial category, hotel construction was unchanged; store construction dropped 9 percent; warehouse construction decreased 16 percent; office construction fell 26 percent; and manufacturing plant construction plunged 72 percent. In the institutional category, educational buildings slipped 1 percent; churches decreased 27 percent; transportation terminals dropped 31 percent; amusement-related construction fell 33 percent; public buildings dropped 38 percent; and health care facility construction fell 41 percent.
Residential building construction grew 4 percent in November. Single-family housing fell 1 percent and multifamily housing increased 17 percent.
Nonbuilding construction dropped 14 percent in November.
During the first 11 months of 2011, nonresidential building decreased 4 percent compared with the first 11 months of 2010. Residential building held steady, and nonbuilding construction fell 2 percent. By geographic region, the West grew 10 percent; South Atlantic grew 5 percent; South Central decreased 4 percent; Northeast fell 11 percent; and Midwest dropped 12 percent.
Date : 1/20/2012 12:00 AM