WEB EXCLUSIVE NEWS! Construction Activity in June Rebounds 5%
Contracting for new construction advanced 5% in June to a seasonally adjusted annual rate of $489.1 billion, it was reported by the F.W. Dodge Division of The McGraw-Hill Companies. Nonresidential building bounced back from a weak May, while nonbuilding construction (public works and utilities) witnessed continued expansion, outweighing a slight retreat for residential building.
June's data lifted the Dodge Index to 147 (1996 =100), compared to May's revised reading of 141. The first two months of 2001 began on a strong note, with the Dodge Index averaging 150, but then contracting retreated during the next three months prior to June's upturn. "The rebound in June offers more evidence that the construction industry is in fact stabilizing close to last year's pace, and is not in the early stages of an extended downturn," stated Robert A. Murray, vice president of economic afthirs for F.W. Dodge. "The mix by project type is of course different in 2001--less commercial building, but more schools, public works, and power plants, combined with high-level stability for housing. As a result of this offsetting behavior by project type, the construction industry as a whole is shaping up as one of the healthier sectors of the economy this year."