New Construction Increases 4% July 14, 2006

The value of new construction starts increased 4% in April to a seasonally adjusted annual rate of $ 688.7 billion, according to McGraw-Hill Construction.  Moderate gains were reported for Non-Residential Construction, while Residential Construction showed more modest growth.

So far this year, total construction is up 8% relative to January - April of last year. "The current year is seeing a shift in the source of expansion for construction activity", quotes McGraw Hill Construction.  "Single family housing had been providing the upward push for much of the past five years, but now it's beginning to lose momentum.  Non-Residential building in 2006 has picked up the slack, as stronger fundamentals such as improved occupancies and rents are out-weighing any dampening arising from higher materials costs."   

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