The value of new construction starts in January retreated 2% to a seasonally adjusted annual rate of $572.4 billion, it was reported by McGraw-Hill Construction, a division of The McGraw-Hill Companies. The pattern of activity by major sector was mixed - residential building was down slightly while nonbuilding construction (public works and electric utilities) experienced a steeper decline. At the same time, nonresidential building rebounded after its lackluster volume in December.
"January showed some of the behavior that's expected to take place in 2005 - modest slippage for housing, and strengthening for nonresidential building," stated Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction. "The path for public works in 2005 remains a tough call. State fiscal conditions are showing some signs of improvement, but more spending restraint could be coming from the federal government, and the next multiyear federal transportation bill still awaits passage."