Construction Industry Growth Mixed

The construction industry has been one of the better performing sectors of a sluggish economy. Growth in public works, power plants, and schools offset a weakness in commercial building. The housing market stayed healthy. However, according to McGraw Hill, "growing weakness for the economy in the aftermath of the September 11th terrorist attack is expected to adversely affect construction, due to diminished homebuyer demand and a more pronounced pullback by commercial building." 

- Nonresidential building in August rebounded 4 percent to $154.5 billion. 

School construction, the largest nonresidential category by dollar volume, showed additional strength by rising 5 percent. The institutional side of the nonresidential market was also helped by a 50 percent increase for "amusement-related" work, boosted by large convention center projects in Las Vegas ($225 million) and the Atlanta area ($60 million).

- Healthcare facilities and churches each registered 4 percent gains, while public buildings (courthouses and detention facilities) declined by 17 percent from July. 

- The commercial categories included substantial improvement for hotels and warehouses, up 40 percent and 23 percent respectively. This could change as developers put more projects on hold in response to the weaker economic climate.

- Manufacturing plant construction is still depressed, slipping an additional 5 percent in August. 

- Store construction was down 8 percent and commercial garages fell 22 percent. 

- Residential building,. Single family housing fell 4 percent, while multifamily housing had a 7 percent gain. September's sharp drop in consumer confidence could lead to diminished demand, which could result in reduced construction." The best results were in the Northeast (up 6 percent) and the West (up one percent). 

- Nonbuilding construction.

Electric power plant construction was down 22 percent from July.

Public works construction was generally stronger, including a 26 percent gain for highways and bridges.

Water supply projects grew 5 percent 

River/harbor development work rose 3 percent, 

Sewer construction fell 11 percent. 

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