Florida Contracts: 21% June Decline; Down 8% YTD
Florida’s three broad categories of construction contract activity declined by double-digit percentage points in June, resulting in a 21% overall decline, according to McGraw-Hill Construction, publisher of Southeast Construction. During June, the state experienced nearly $1.8 billion in new contracts for future construction.
The nonresidential market fell by 22% during June to tally approximately $716.3 million. That compared to the $919.7 million of a year ago.
The value of new residential starts slipped as well, dropping by 12% for a monthly total of approximately $696.8 million. A year ago, the residential sector delivered nearly $794.1 million in new projects.
Falling by the greatest percentage, however, was the nonbuilding category, which includes roads, bridges and other civil projects. According to McGraw-Hill Construction, the value of new nonbuilding contracts fell 31% compared to last June, for a $360.5-million total. That compares to the year-ago figure of $523.4 million.
On a year-to-date basis, the value of Florida’s 2010 contracts is still negative.
Through the first six months of the year, the state’s total for all new projects is 8% behind 2009’s midyear pace, with $12.8 billion in new projects. That compares to last year’s total of more than $13.9 billion.
The nonresidential market has declined by the greatest percentage figure on a year-to-date basis. This sector is 29% behind last year’s pace, with about $3.7 billion in new contracts.
The nonbuilding category is also down on a year-to-date basis, with a 13% decline for the first six months of 2010. That equates to roughly $4.6 billion in new starts.
Residential is the only positive sector for 2010. According to McGraw-Hill Construction, this market is 30% ahead of last year’s pace, with a total of nearly $4.6 billion in new starts.