February Construction Falls 7 Percent

At a seasonally adjusted annual rate of $376.0 billion, new construction starts in February dropped 7 percent from the previous month, according to

Nonresidential construction saw diminished activity, while residential building in February was able to register modest growth.

For the first two months of 2011, total construction starts on an unadjusted basis came in at $52.9 billion, down 14 percent from a year ago. For the 12 months ending February 2012 versus the 12 months ending February 2011, which lessens the volatility present in year-to-date comparisons of just two months, total construction starts were down 2 percent.

Nonresidential building, at $127.6 billion (annual rate), dropped 7 percent in February. A large part of the shortfall came from a 22 percent slide for educational buildings, continuing the descent for this category which has been underway for the past three years. Public buildings (courthouses, detention facilities, and military buildings) weakened further in February, plummeting 46 percent. The healthcare facilities category in February decreased 9 percent.