Construction starts

Reed Construction Data announced that the year-to-date value of construction starts through December 2006, excluding residential contracts, totaled $281.1 billion, 9.2 percent higher than in 2005. Allowing for construction cost inflation, the real volume of new starts increased about 3 percent in 2006 compared to 2005, approximately matching overall growth in the economy. December starts increased 21 percent from the weak November total and were 26 percent above last December. They were among the highest monthly totals ever. The growth in new project activity is in the neighborhood of the peak for this building cycle. Ahead, the increase in monthly project totals will be largely due to project cost inflation. The rapid decline in the value of construction starts that occurred after previous periods of rapid growth is not expected in 2007-2008. Last year’s fastest growing markets were hotels, amusement and recreation facilities, nursing and assisted living homes, government buildings (other than public safety), parking garages and hospitals. Roads and highways weere up 12.9 percent for the year. Your comment?