Construction slips 11 percent in July

Nonresidential segment remains strong New construction starts fell 11 percent in July to a seasonally adjusted annual rate of $588.1 billion, according to an Aug. 22 release from McGraw Hill Construction of New York. The value of construction from January to July reached $363.2 billion, 13 percent below the same period last year. Though, with the residential segment excluded, construction starts during the period show a 2 percent increase year-over-year, according to the release. Nonresidential starts fell 23 percent in July, following an uncharacteristically strong June that saw a 27 percent increase in spending. “July’s slower activity for nonresidential building was expected, since June had been boosted by the start of several massive projects,” Robert Murray, vice president of economic affairs for McGraw-Hill Construction, said in the release. “The year-to-date figures show that non-residential building … is performing fairly well in 2007.” Despite the decline, several nonresidential segments saw growth during the month, including public buildings, up 23 percent, transportation terminals, up 27 percent, and store construction, up 4 percent. Store construction sits 12 percent year-over-year. “One of the more interesting parts of this year’s nonresidential market is the continued strength for stores and shopping centers,” Murray said in the release. “This project type has typically followed the pattern shown by homebuilding, but so far it has been able to withstand any downward pull from the weak housing sector.” Read the full release here.Share this article: