New construction starts in June slipped 1% to a seasonally adjusted annual rate of $446.1 billion, according to McGraw-Hill Construction, a division of The McGraw-Hill Cos. After the elevated activity reported during March and April, which reflected the lift coming from the start of two nuclear power projects, total construction in May and June returned to a level just slightly above the average monthly pace reported during the previous year.
June featured a moderate loss of momentum for nonresidential building, after this sector’s improved performance in May. At the same time, residential building in June maintained its gradual upward trend, while nonbuilding construction was unchanged as the result of divergent behavior by public works and electric utility segments. For the first six months of 2012, total construction starts on an unadjusted basis came in at $225.0 billion, up 4% from the same period a year ago. June’s data produced a reading of 94 for the Dodge Index (2000=100), compared to a revised 95 for May. For all of 2011, the Dodge Index averaged 92.