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Financials
Nonresidential construction stays strong in July
Nonresidential construction posted more gains in July, despite the fall of the subprime mortgage market that many economists expected would hurt all segments of the building industry, according to a Sept. 4 release from the Associated General Contractors of America, in Arlington, Va.
“Nonresidential construction shrugged off the turmoil in homebuilding and credit markets in July to post another solid gain,” said Ken Simonson, AGC chief economist, in the release. “Although total construction spending slipped 0.4 percent in July, seasonally adjusted … nonresidential spending climbed 0.6 percent, the 10th consecutive monthly gain.”
According to the July Census Bureau construction report, also released Sept. 4, the segments of the commercial market that saw the most growth in the month include multiretail, up 4 percent in July, 28 percent year-to-date, and private office, up 0.6 percent for the month, 22 percent year-to-date, Simonson noted. Private health care also increased 1.3 percent for the month, 13 percent year-to date, according to the AGC release.
“I anticipate [health building] will remain vigorous, but I expect credit-sensitive types such as office, warehouse, retail and lodging to slow soon,” Simonson said in the release.
Public construction was up 0.7 percent for July, 11 percent year-to-date, led by education construction that rose 1.9 percent for the month, 12 percent year-to-date, according to the release.
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