Magazine article Business Credit

U.S. Construction Starts Show Strength Early in 2006

Magazine article Business Credit

U.S. Construction Starts Show Strength Early in 2006

Article excerpt

Reed Construction Data announced that U.S. construction starts, excluding residential projects, increased 9.5 percent in the first two months of 2006 compared to the same period in 2005. The value of non-residential construction starts increased a similar 10 percent in full-year 2005, after declining for several years. February 2006 construction starts totaled $17.685 billion, off 23.9 percent from January 2006, when unusually favorable construction weather boosted starts.

The largest gains in starts so far this year among the major construction sectors include a 113.5 percent increase for hotels/motels, a 22.6 percent gain for private office buildings, a 19.9 percent increase for hospitals/clinics, a 13.8 percent rise for water/sewer projects and a 12.8 percent increase for retail buildings. Road/highway construction starts year to date are 10.3 percent below the first two months of last year.

In 2006, growth in construction starts is expected to slow slightly, but will be strongest in 2006 for office, hotel and educational buildings and water, sewer and transportation facilities. However with lower construction cost inflation forecast this year, little, if any, decline in real construction activity (after inflation) is expected in 2006. According to RSMeans, construction costs rose 6. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.