At a seasonally adjusted annual rate of $509.4 billion, the value of new construction starts in August rebounded 7% from a lackluster July, according to McGraw-Hill Construction Dodge. Double-digit gains were reported for nonresidential building and nonbuilding construction, while housing showed more modest improvement.
"The construction industry in 2002 has essentially stabilized close to its 2001 level, following ten straight years of expansion," stated Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction. "The weak economy over the past year led to sharp declines for commercial and manufacturing building, but the slack has been picked up by further growth for single family housing, public works, and institutional building. As shown by the August data, these latter three sectors continue to move at a healthy clip, at least for the present."