Contracting for new construction in July dropped 8% to a seasonally adjusted annual rate of $467.9 billion, it was reported by the Dodge Division of McGraw-Hill Construction. The loss of momentum was present across a wide range of project types—public works, nonresidential building, and single family housing. Despite the weak July, total construction activity during the first seven months of 2002 was essentially even with the same period a year ago.
The current year has seen an up-and-down pattern—elevated contracting at the outset of 2002, reduced activity in early spring, a rebound in May and June, followed by a decline in July. "The volume of new construction in July was at the low end of this year's range, but it's still consistent with the sense that total construction activity in 2002 is hovering around last year's average pace," stated Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction.