New construction starts flat in 2006 after double-digit growth in '04, '05

摘要

New construction starts increased 2 percent in December to a seasonally adjusted annual rate of 626.9 billion dollars, according to McGraw-Hill Construction, a division of The McGraw-Hill Companies. Residential building edged upward, and greater activity was reported for nonbuilding construction (public works and electric utilities). At the same time, nonresidential building in December settled back from its recent strength. For the full year 2006, total construction came in at 663.0 billion dollars, 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 percent and 12 percent, respectively. The December data produced a reading of 133 for the Dodge Index (2000=100), compared to 131 for November. From the spring of 2006 through late fall, the Dodge Index had dropped 15 percent, due to the sharp downturn for single-family housing that outweighed gains by nonresidential building and public works. At the close of 2006, single-family housing began to stabilize, making it possible for total construction to register a slight increase after its extended decline. Still, the December reading for the Dodge Index, at 133, remained 5 percent below the 140 average for the full year 2006.