Friday, March 4, 2011

Construction in the U.S. - the new year starts off in a sluggish manner

According to an article posted on AGC of America’s web-site on February 24, 2011, January 2011 “construction starts” decreased on an overall-sector basis. It states in the article that the information is based on data collected and reported by McGraw Hill.

Here’s part of the article I found on AGC of America’s web-site (you’ll find a link, below, the article, so that you can, if you want to, read the full article:

“The value of new construction starts retreated 6% in January” at a seasonally adjusted annual rate, according to McGraw-Hill Construction (MHC), based on data it collected. “The decline came as the result of a pullback for nonresidential building after a strong December, combined with a loss of momentum for residential building. At the same time, the nonbuilding construction sector showed further growth in January on top of its elevated December pace, aided by several large public works projects. On an unadjusted basis, total construction starts in January were…down 4% from the same month a year ago….Nonresidential building in January dropped 13%…, following December’s strong 27% gain. Healthcare facilities in December were lifted by the start of six massive hospital projects, and January showed this category retreating 46% from its exceptional December amount. The healthcare category in January was still 7% above its monthly average for 2010 as a whole….Transportation terminal work in January was also down sharply, falling 75%, compared to a robust December that included the start of a $450 million airport terminal project at Love Field in Dallas. [Residential building] dropped 7% in January after showing modest improvement during the previous five months. Single family housing held steady in January [but there was a] 35% decline for multifamily housing, which retreated after the gains witnessed at the end of 2010….Nonbuilding construction in January advanced 2%….Highway and bridge construction soared 42%, reflecting the lift coming from $1.5 billion for the start of work to add new lanes to the LBJ Freeway in Dallas….Additional perspective can be obtained by looking at 12-month moving totals, in this case the 12 months ending January 2011 versus the 12 months ending January 2010, which lessens the volatility present in one-month comparisons. For the 12 months ending January 2011, total construction was down 2%, due to this pattern by sector – nonresidential building, down 10%; residential building, up 5%; and nonbuilding construction, up 3%.”

This link will take you to the full article:

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