In its “Data DIGest” weekly newsletter, the Associated General Contractors of America (ACGA) released detailed statistics regarding economic activity in the construction sector. In its report, the ACGA indicates that economic activity has picked up, conditions in the financial markets have improved and activity in the construction sector has experienced an uptick.
In the report, Kermit Baker, chief economist of the American Institute of Architects says that banks remain reluctant to provide financing for projects and that new equity requirements and conservative appraisals are adding to the difficulty contractors and developers are experiencing when applying for loans.
New construction starts in August increased 2 percent from July, but fell 33 percent year-to-date (YTD) over the first eight months of this year, according to a McGraw-Hill Construction report. Other statistics released by the company included a 1-percent drop in residential building for August and a 3-percent drop in nonresidential building for the month. Among the nonresidential sectors that are thriving in August compared with last month are educational building (up 9 percent), hotels (up 1 percent), stores (up 15 percent), manufacturing plant construction (up 206 percent) and transportation construction (up 160 percent), due mostly to a $680 million project at the Fulton Street Transit Center in New York.
The unemployment rate increased in 27 states and the District of Columbia in August, decreased in 16 and stayed the same in seven, according to the Bureau of Labor Statistics. Overall, in August the national unemployment rate reached 9.7 percent compared with 9.4 percent in July.
Finally, industrial production in manufacturing increased 0.6 percent, seasonally adjusted, for the month according to the Federal Reserve.