Contracting for new construction dropped 1% in October to a seasonally adjusted annual rate of $490.1 billion, according to the F. W. Dodge Division of The McGraw-Hill Companies (New York). Residential building continued its gradual retreat of recent months, while a sharper decline was reported for nonbuilding construction (public works and utilities) after a very strong September. Running counter to this downward trend was improvement for nonresidential building.
"The construction industry has yet to see a sustained loss of momentum, as it
remains one of the better performers in this year's faltering economy ," stated Robert A. Murray, vice president of economic affairs for F. W .Dodge. "When commercial building weakened earlier in 2001, the slack was picked up by other project types. In October, improved contracting for commercial and institutional building partially offset the declines reported for single family housing, public works, and electric utilities."