New construction starts in April rose 3% to a seasonally adjusted annual rate of $484.5 billion, according to the Dodge Division of McGraw-Hill Construction (New York). Compared to the previous month, moderate improvement was registered by each of the industry's three main sectors—nonresidential building, residential building, and nonbuilding construction (public works and electric utilities).
March showed single family housing settling back to a more sustainable pace, but it also featured a retreat for public works as well as further weakening for commercial building. "It's true that new construction starts are no longer seeing the 4% to 5% rate
of growth that occurred during 2000 and 2001, but contracting in a broad sense is avoiding a protracted decline. Continued strength for single family housing in 2002, with added support from institutional building and public works, is helping to offset a diminished volume of commercial building," stated Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction.