Volume 47, Issue 10 - October 2012


Nonresidential Construction Falls 7 Percent in July

Nonresidential construction declined by 7 percent in July, according to the latest monthly report from McGraw-Hill Construction. This compares with a total construction decline of 10 percent for the month.

According to the report, weaker activity was reported for the majority of the institutional categories, including educational facilities, which dropped 12 percent, despite showing some improvement in the previous two months.

Likewise, healthcare construction dropped 10 percent in July, along with amusement-related construction (down 13 percent) and churches (down 10 percent).

On a positive note, the public buildings category, comprised of courthouses and detention facilities, saw a construction increase of 1 percent for the month, while hotel construction climbed 13 percent. Store construction grew by 6 percent and office construction grew by 4 percent. Warehouse construction remained stable when compared with June.

“The construction industry is still struggling to gain upward traction, as construction starts to exhibit an up-and-down pattern,” says Robert Murray, vice president of economic affairs for McGraw-Hill Construction. “The public works and institutional building sectors are still being adversely affected by the tough fiscal climate facing the federal, state and local levels of government. Commercial building, which seemed to be in the very early stages or recovery, is seeing its faint upturn become more tenuous with the sluggish employment picture.”

Overall, the entire construction industry was down 10 percent for the month, according to the report.

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