Non-residential boom

Residential construction may be going down like a lead balloon, but non-residential is flying high. Reed Construction Data announced that the year-to-date value of construction starts through July 2007, excluding residential contracts, totaled $180.4 billion, 20 percent higher than during the same period in 2006. Declining year-to-date residential starts will fully offset the increase in non-residential starts. Non-residential starts in July, at $30.2 billion, were only 1.5 percent below June’s record high level, but 31 percent above last June. The largest gains in July contracts were for schools and colleges, public safety buildings, factories, military facilities, nursing homes and water and sewer lines and plants. Commercial building contracts grew 26 percent in June, but declined 30 percent in July. The U.S. Census Bureau reported that year-to-date non-residential construction spending through June accelerated to 15.3 percent above the same period a year earlier. Since this trails the starts trend, acceleration in the growth of job-site construction spending is expected in the next few months, even if the turmoil in financial markets causes a slowdown in new construction starts. Your comment?