Masonry Magazine June 1992 Page. 42
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Construction Contracting for February
Climbs 6 Percent, Fuels
Nation's Economy
RECOVERY OF THE CONSTRUCTION industry picked up momentum in February as contracting for new projects rose six percent, it was reported by McGraw Hill's F. W. Dodge Division. The latest month's advance extended a "saw toothed recovery of construction contracting that began early in 1991.
February gains in all three broad categories of construction-housing, nonresidential building and public works/utilities-brought the Dodge Index of total construction contracting back to 100, a level that hasn't been reached in more than a year and a half.
"This is more evidence that the economy has turned the corner," said George A. Christie, McGraw-Hill's chief economist. "Construction contracting is now almost fifteen per cent above last year's average level. As this higher volume of newly started work is brought to completion over the months ahead, jobs in construction and outlays for building products are bound to rise," he predicted.
Nonresidential building, with a twelve percent gain, was February's pacesetter as contracting for commercial and institutional buildings rebounded from January's setback. Educational and health care facilities showed better than average gains, although the commercial real estate market's problem areas, offices and hotels, failed to participate in February's otherwise general advance.
The year long rise of residential building continued through February with another three percent gain. As before, improvement was concentrated in single family housing where the elements of affordability-sales price and financing costs are particularly favorable. Christie cautioned that, "Seasonal adjustment of housing data in the winter months is less than reliable, and could be making good housing numbers look even stronger than they really are. We'll have a better fix on this situation soon."
With building up in all regions of the country, the year's biggest housing gains are found in the north central and south central states.
At the end of February, the unadjusted total of 1992 contracting for new construction, at $33-billion, was sixteen percent ahead of 1991's value for the same period. The south central region, where contracting was up eighteen percent, was closest to the national average. The northeast and north central regions, with gains of twenty-four and thirty percent respectively, showed the biggest improvement, while the south Atlantic and the west, up seven percent and six percent, lagged.
42 MASONRY-MAY/JUNE, 1992