The construction industry is struggling to gain its upward traction in the U.S.; according to a new report by McGraw-Hill Construction, new construction activity fell by 10 percent in July to a seasonally adjusted annual rate of $401.2 billion.
"The public works and institutional building sectors are still being adversely affected by the tough fiscal climate facing the federal, state, and local levels of government," Robert A. Murray, vice-president of economic affairs for McGraw-Hill Construction said. "Commercial building, which seemed to be in the very early stages of recovery, is seeing its faint upturn become more tenuous with the sluggish employment picture.
"The upward potential for housing in the near term is also being dampened by the persistently hesitant U.S. economy. Overall, the construction industry remains stuck for now in an extended process of turning the corner."
But construction in the commercial sector showed modest growth in July. Increased construction activities in Pennsylvania and Denver lifted the hotel construction industry by 13 percent. Office and retail store construction also showed an upward trend with a four percent and six percent increase, respectively.
However, a 25 percent pullback for multifamily housing following strengthening activity in May and June resulted in a six percent dip in the construction of residential buildings. On the other hand, single family housing moved up by one percent.
“The July pace for single family housing was up six percent from the first six months of 2012, and up 27 percent from the average pace for this project type during 2011,” the report showed.
Meanwhile, the South Atlantic saw maximum construction with the start of two nuclear power plants in Georgia and South Carolina. Construction activity in the South Atlantic was up by 42 percent. Total construction in the Midwest was also up five percent.
