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U.S. construction for '06 on the level

Date Posted: February 2 2007

New U.S. construction starts increased 2% in December to a seasonally adjusted annual rate of $626.9 billion, according to a Jan. 25 report by McGraw-Hill Construction.

For the full year 2006, total construction came in at $663.0 billion, essentially the same
dollar amount as 2005. This marked a change from the double-digit growth of 2004 and 2005, when the value of new construction starts climbed 11% and 12%, respectively.
"The 2006 pattern for total construction was shaped by the single-family downturn, a notable change compared to the lift that single-family housing provided during the first half of this decade," stated Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction. "Last year also featured growth for such nonresidential structure types as hotels, offices, and schools, combined with a brisk pace for the public works sector.

"For 2007, it appears that the worst of the single family slide is over, but the climate for nonresidential building and public works may not be quite as favorable as last year."

The annual statistics for total construction in 2006 showed reduced activity in three of the five major regions - the West, down 2%; the Midwest, down 3%; and the South Atlantic, down 5%. The two regions that were able to show growth for total construction in 2006 were the Northeast, up 2%; and the South Central, up 12%.