Contracting for New Construction Climbs 3% in June
The value of new construction starts advanced 3% in June to $446.8 billion, according to the F.W. Dodge Division of The McGraw-Hill Companies. Nonresidential building rebounded after a quiet May while nonbuilding construction, public works and utilities, maintained its upward trend of recent months.
June’s nonresidential building figures climbed 14% to $169.7 billion, with almost all sectors reporting increases. Shopping centers and stores were up 22%; warehouses up 23%; and hotel construction grew 18%, boosted by the start of a $157 million project in New York City. Office construction posted an 8% gain, thanks to a $162 million project in Chicago, a $136 million project in Boston, a $115 million project in St. Louis, and an $80 million project in Atlanta. According to Robert A. Murray, vice president of economic affairs for Dodge, “The office market over the past year has witnessed an increased contribution coming from downtown high-rises, while suburban projects have shown signs of leveling off. In addition, office development is generally exhibiting a greater degree of discipline now than in the past, which should help keep the threat of overbuilding in check.”