The value of new construction starts in December dropped one percent to a seasonally adjusted annual rate of $479.9 billion, according to the F.W. Dodge Division of The McGraw-Hill Companies (New York). Nonresidential building fell back after its improved pace in November, while gains were reported for housing and public works. For all of 2001, total construction advanced 3% to $485.2 billion, marking the tenth straight year of expansion. The 3% increase followed growth of 5% in 2000 and 11% in 1999.
"The construction industry slipped back during the first half of 2001, but then proved to be one of the more resilient sectors of the economy as the year progressed," stated Robert A. Murray, vice president of economic affairs for F.W. Dodge. "The relatively modest deceleration for total construction was the result of a varied performance by sector. Commercial building lost considerable momentum during the first half of 2001, and then experienced some additional weakening after September 11. At the same time, single family housing had a very strong 2001, helped by low mortgage rates, and school construction reached a new record high. Public works construction maintained its strengthening trend of recent years, and electric power plant construction continued to surge."