The value of new construction starts in January increased 2% to a seasonally adjusted annual rate of $504.4 billion, according to McGraw-Hill Construction Dodge, a division of The McGraw-Hill Companies. Modest gains relative to December were shown by each of the construction industry's main sectors – nonresidential building, residential building, and nonbuilding construction.
"Over the past year, the construction industry leveled off after a decade-long expansion, and January shows total construction essentially maintaining its 2002 pace," stated Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction Dodge. "The stability in 2002 resulted from a robust volume of single family housing offsetting steep declines for commercial building. In 2003, however, it's not expected that single family housing will be able to register the same growth as last year. Stability for total construction will require commercial building to at least experience smaller declines, if not the early stages of recovery. January's activity offers a glimpse that such a scenario may unfold, although considerable uncertainty still surrounds this year's prospects."