Construction picks up momentum

March 12, 2003
The value of new construction starts in January increased 2% to a seasonally adjusted annual rate of $504

The value of new construction starts in January increased 2% to a seasonally adjusted annual rate of $504.4 billion, according to McGraw-Hill Construction Dodge, a division of The McGraw-Hill Cos. Modest gains relative to December were shown by each of the construction industry's main sector--nonresidential building, residential building and nonbuilding construction.

January's data produced a 152 reading for the Dodge Index, up from a revised 149 for December. For 2002 as a whole, the Dodge Index averaged 150.

"Over the past year, the construction industry leveled off after a decade-long expansion, and January shows total construction essentially maintaining its 2002 pace," said Robert Murray, vice president of economic affairs for McGraw-Hill Construction Dodge.

Nonbuilding construction in January increased 3% to $91.7 billion. On the plus side, highway and bridge construction grew 21%, boosted by the start of several large highway projects in Florida, Texas and Pennsylvania.

"Highway construction in 2003 may fare better than what was thought possible only a few months ago," said Murray. "In February, Congress approved funding for the federal-aid highway program that was down just 1% from the 2002 fiscal year, versus the 10% to 15% cuts that had been considered earlier."

Sponsored Recommendations

Our new Bridge Hanger animation demonstrates how fast and easy it is to install light, sturdy fiberglass conduit onto bridges.
Learn how Champion Flame Shield® Provides a Safe Solution in Fire Sensitive Applications
See how fiberglass conduit stacks up to the competition in crucial areas like weight, corrosion resistance and installation cost.
See how Champion Fiberglass compares to PVC, GRC and PVC-coated steel in installation.