Non-residential gains

At least non-residential is hot. Reed Construction Data says that the year-to-date value of construction starts through May 2007, excluding residential contracts, totaled $123.486 billion, 18.2 percent higher than in 2006. Starts increased 3.9 percent from April to a record high total. Preliminary estimates suggest that this non-residential gain will be more than offset by a decline in the value of residential starts. Separately, the Census Bureau reported that job-site construction spending through April was13.1 percent above the same months in 2006. Reed Construction Data expects the recent surge in starts to lead to quicker growth in construction spending later this year, especially for heavy construction projects. However the collapse in the housing market will keep total construction activity, after inflation, about unchanged in 2007. Roads and highways were up 8.2 percent.Your comment?