The value of new construction starts dropped 12% in January to a seasonally adjusted annual rate of $469.1 billion, according to McGraw-Hill Construction, a division of McGraw-Hill Financial. The decline followed a sharp 23% increase for total construction in December and brought the level of contracting back to the average pace reported during 2012.
Much of January’s downturn was due to decreased activity for nonresidential building and housing, while the nonbuilding construction sector (public works and electric utilities) held close to its December volume. On an unadjusted basis, total construction starts in January were reported at $33.1 billion, up 11% from the same month a year ago.