At a seasonally adjusted annual rate of $468.8 billion, contracting for new construction was essentially unchanged from the prior month, according to the F.W. Dodge Division of The McGraw-Hill Companies (New York). Moderate improvement was reported for nonresidential building, in contrast to reduced contracting for housing. Nonbuilding construction was also down slightly in August, as a slower pace for new power plant projects outweighed further growth for public works.
“For much of 2001, the construction industry has been one of the better performing sectors of a sluggish economy,” stated Robert A. Murray, vice president of economic affairs for F.W. Dodge. “Continued expansion for public works, power plants, and schools offset a downward trend for commercial building, while the housing market stayed healthy. However, growing weakness for the economy in the aftermath of the September 11th terrorist attack is expected to adversely affect construction, due to diminished homebuyer demand and a more pronounced pullback by commercial building.”