May Contracts: More Major Declines in N.C., S.C.
Compared to the same period of a year ago, the value of new contracts signed in May for future construction fell by 50% overall in North Carolina, and by 44% in South Carolina, according to the latest information from McGraw-Hill Construction, publisher of Southeast Construction.
In North Carolina, the overall total for new project starts was roughly $798 million, down from last May’s total of approximately $1.6 billion.
After improving in April, the nonresidential sector declined the most of any in May, dropping 60% compared to the same period of a year ago, for a nearly $214.2-million total.
The residential sector fell 51% to total $441.7 million for the month. The nonbuilding sector – which includes infrastructure projects – fell by a relatively mild 14%, and totaled $142.1 million for the month.
For the year-to-date, North Carolina’s overall contract activity is 51% behind 2008’s pace. The nonbuilding sector remains the furthest behind, with its $617.6-million total an estimated 72% behind last year’s pace. Residential is now 55% behind for the year, with $2.1 billion in new contracts through May. The nonresidential category is 29% behind ’08, with approximately $2 billion in new contracts so far.
In South Carolina, May contracts fell by an overall rate of 44%. The state’s total was $580.3 million, down from the year-ago tally of slightly more than $1 billion.
The residential sector continued its slide, falling 44% in May compared to the same period of a year ago, for a total of roughly $296 million. The nonresidential sector fell by 43% to tally $251.7 million for the month. The value of contracts in the nonbuilding sector fell by 49% compared to a year ago and totaled $32.6 million.
For the year-to-date, South Carolina’s overall contract activity is 53% behind last year’s pace, with approximately $2.3 billion in new contracts for the first five months of the year. The nonresidential category is 38% behind 2008, with roughly $776.5 million in new contracts. The residential sector is 51% behind ‘08’s pace, with a $1.2-billion total. The nonbuilding sector is 74% behind last year, with a $317.3-million tally.