Contracting for new construction slipped 3% in May to a seasonally adjusted annual rate of $435.6 billion, reported the F.W. Dodge Division of The McGraw-Hill Companies. Nonresidential building declined while nonbuilding construction continued to advance due to increased power plant construction. .
According to Robert A. Murray, vice president of economic affairs for Dodge, “While consistent with other signs of a slowing economy, it’s also true that the construction industry continues to perform at a healthy pace. Both the public works and institutional building sectors are expected to see a general strengthening trend during 2000, while any loss of momentum for housing and commercial building should stay limited.”
Nonresidential building dropped 8% in May at $150.3 million. Most commercial structure types posted declines such as warehouses, down 8%, offices, down 14%, and stores and shopping centers, down 15%. Hotel construction jumped 50% due to a $112 million project in San Diego and an $85 million project in Charlotte, NC. .