Construction Starts Up in Early 2006

April 2006 » Business Briefs
Reed Construction Data recently reported in its Construction Industry Snapshot that the number of construction-starts, not including residential projects, grew by more than 9.5 percent over January and February 2006 compared with the same 2005 period. According to Reed's data, the sectors experiencing the biggest increases were hotel/motel (113.5 percent), private office buildings (22.6 percent), hospitals and clinics (19.9 percent), water/sewer projects (13.8 percent), and retail (12.8 percent). Laggards include the road and highway construction sector, which experienced a 10.3-percent decrease, and industrial manufacturing, which experienced a 52.4-percent drop in activity compared with the same period in 2005.
Reed Construction Data recently reported in its Construction Industry Snapshot that the number of construction-starts, not including residential projects, grew by more than 9.5 percent over January and February 2006 compared with the same 2005 period. According to Reed's data, the sectors experiencing the biggest increases were hotel/motel (113.5 percent), private office buildings (22.6 percent), hospitals and clinics (19.9 percent), water/sewer projects (13.8 percent), and retail (12.8 percent). Laggards include the road and highway construction sector, which experienced a 10.3-percent decrease, and industrial manufacturing, which experienced a 52.4-percent drop in activity compared with the same period in 2005.

The Snapshot further reports that construction is expected to slow down as the year wears on. Low rates of inflation for construction prices, however, will help offset this. It also reports that improving profits for owners of commercial buildings, the federal government's improving finances, and the growing need for companies to increase building capacity will help keep the overall construction market going. Reed predicts that the transportation, office and hotel, education, and water and sewer construction markets will be 2006's strongest.


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