At a seasonally adjusted annual rate of $376.1 billion, new construction starts in May dropped 6% from the previous month, according to McGraw-Hill Construction, a division of The McGraw-Hill Cos. Nonresidential building pulled back after its improved level in March and April, while residential building stayed weak.
The nonbuilding construction sector showed moderate growth in May, as a strong gain for electric utilities offset a loss of momentum for public works. During the first five months of 2011, total construction starts on an unadjusted basis came in at $155.2 billion, down 9% from the same period a year ago.