Overall U.S. construction activity in the 12 months leading up to June 2009 dropped 27 percent compared to the same period through June 2008, according to a July 21 report by McGraw-Hill Construction.

The year-to-date numbers are even worse: through the first six months of 2009, total U.S. construction came in at $195.4 billion, down 36% from the same period a year ago. On a monthly basis, new U.S. construction starts in June dropped 7 percent after a 7 percent rise in May activity.

“The construction start figures appear to be moving more towards an up-and-down pattern,” stated Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction. “The bad news is that the overall volume of activity remains very weak; the good news is that if an up-and-down pattern is in fact being established, it marks a shift from the steady decline witnessed during the second half of 2008 and into early 2009.

“Just how this pattern for total construction evolves during the second half of 2009 will depend on what’s likely to be a varied performance by major construction sectors. Nonresidential building, hampered by the weak economy and tight bank lending, should see further erosion. On the plus side, the boost to public works from the federal stimulus funding has only begun to emerge, with more gains to come. And, single family housing has seen modest strengthening during the spring, suggesting that the bottom for this structure type was reached earlier in 2009.”

By region, the twelve months ending June 2009 showed the Midwest and South Central each down 20 percent. The South Atlantic was down 33%, while the West and
Northeast were each down 30%.