Contracting for new construction in January increased 2% to a seasonally adjusted annual rate of $491.4 billion, it was reported by the F.W. Dodge Division of The McGraw-Hill Companies (New York). Nonresidential building rebounded after a weak December, while residential building continued at a brisk pace. In contrast, the nonbuilding construction sector lost momentum, reflecting a sharp decline for electric power plants.
"The construction industry proved to be one of the healthier sectors of the economy during 2001, and the slight gain in January suggests that construction remains resilient," stated Robert A. Murray, vice president of economic affairs for F. W .Dodge. "Single family housing and school construction were the industry mainstays during 2001, offsetting weakness for commercial building, and the first month of 2002 shows a continuation of that trend. At the same time, the steep drop in new power plant starts for January is an early sign that this category won't see a repeat of last year's exceptional performance."