Construction starts down 11 percent from 2006

After falling 11 percent in July, new construction starts partially rebounded in August, increasing 6 percent to a seasonally adjusted annual rate of $624.3 billion, according to a Sept. 27 release from McGraw-Hill Construction in New York. Starts for the first eight months of the 2007 reached $424.9 billion on an unadjusted basis, down 11 percent from the same period last year. “Through the first eight months of 2007, the construction start series has hovered around a level that is 7 percent to 8 percent below last year’s average pace,” Robert Murray, vice president of economic affairs for McGraw-Hill Construction, said in the release. “The downturn for residential building has shaped this year’s pattern for overall construction activity, and with multifamily now joining single family housing in decline, the correction for residential building is still very much in progress. In contrast, nonresidential building and public works remain on track to register moderate growth for 2007 as a whole.” Nonresidential starts led building during August, increasing 16 percent to an annual rate of $222.1 billion. However, aside from hotel construction that increased 20 percent in August, the nonresidential segments that rely most heavily on the glass industry declined in the month. Store construction fell 4 percent, office construction dropped 28 percent and health care building decreased 19 percent, according to the release. Despite the drops in August, all three segments remain up from last year, according to the release. Read the full release.Share this article: