New construction starts advanced 8% in August to $424.7 billion, reports McGraw-Hill Construction. The gain followed a 10% decline in July. The uptick in August came from greater activity in commercial building, residential building, and infrastructure. For the first eight months of 2011, total construction was at $274.8 billion, down 6% from the same period a year ago.
“During the first five months of this year, total construction had trended downward, but over the next three months an up-and-down pattern has emerged,” said Robert Murray, vice president of economic affairs for McGraw-Hill Construction. “This suggests that construction starts are beginning to stabilize after the earlier loss of momentum. At the same time, total construction remains on track to register a moderate decline for 2011 as a whole, after leveling off in 2010.”
“While August showed some improvement for institutional building and public works, each of these sectors will be subject to funding cutbacks at the federal and state levels of government,” Murray said. “Single family housing continues to see homebuyer demand restrained by the sluggish economic environment and more restrictive lending standards. And, what appears to be the early signs of recovery for commercial building may well end up being deferred by rising investor concern about employment growth and the near term prospects for the U.S. economy.”
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