Amadeusz Juskowiak

Construction contracting down three pct in jan

Contracting for future construction work declined by three pct in January to an annualized rate of 2361 billion dlrs a report on the industry said

The report by the FW Dodge Division of McGrawHill Information Systems Co said a 10 pct reversal of nonbuilding construction was largely responsible for the months setback from Decembers higher level

Residential building eased three pct in January while contracts for commercial industrial and institutional buildings rebounded slightly according to the report

Nonbuilding construction which soared to an annualized rate of 478 billion dlrs in December when last years only major electric power plant was started fell back 10 pct to 431 billion

Dodge said contracting for highway and bridge construction advanced five pct in January However available funding for 1987 construction could dry up if Congress fails to act after the Federal highway program runs out of carryover spending authority

Nonresidential buildings edged up one pct in January to an annualized rate of 776 billion Contracting for institutional structures such as schools and health facilities was the reason for the gain the report said

Residential building was valued at 1154 billion dlrs in January a decrease of three pct from Decembers seasonally adjusted rate the report stated However demand will be strong for singlefamily units supported by falling mortgage rates but multifamily buildings will not be in high demand as a result of the tax reform according to the report

Reuter