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There are signs of life in nonresidential, AGC says

Date Posted: February 8 2008

The latest economic indicators say that the slump in the U.S. housing market has not spread to the nonresidential construction sector.

"Total construction employment fell by 27,000 in January, seasonally adjusted, but all of those losses occurred in residential building and specialty trades," said Associated General Contractors of America Chief Economist Ken Simonson. "Employment in the three nonresidential categories - nonresidential building, specialty trades, plus heavy and civil engineering - edged up 1,300."

It wasn't much growth in jobs, but it was growth. And Simonson said analysis of U.S. Census numbers show more growth through this year, mostly at double-digit rates, in 15 of 16 nonresidential categories.

Census figures for December show nonresidential construction spending jumped almost 16 percent from a year earlier, Simonson said while residential spending in December fell 20 percent from a year before.
For 2008, Simonson said he expects "modest" growth in nonresidential construction.