The value of new construction starts dropped 11% in March to a seasonally adjusted annual rate of $468.9 billion, according to the Dodge division of McGraw-Hill Construction (New York). Both single family housing and public works fell from the very strong contracting reported at the beginning of 2002, while nonresidential building slipped back from more modest improvement.
"The pace of construction activity in January and February was unusually strong, aided by warm winter weather that helped to push forward the timing of construction starts," stated Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction. "The March decline in effect 'compensates' for the heightened activity at the start of 2002, so perhaps a better reading of the construction industry comes from looking at the average for the year's first three months.