The value of new construction starts dropped 10% in July to a seasonally adjusted annual rate of $394.7 billion, according to McGraw-Hill Construction, a division of The McGraw-Hill Cos.
The decline followed a 15% gain in June and returned total construction to the lower end of its recent range. The nonbuilding construction sector, comprised of public works and electric utilities, fell back after a robust June that had been lifted by the start of several large transmission line and power plant projects. Nonresidential building also slipped back after its improved pace in June.