New US home starts surge in June

 

The number of new homes built totalled 582,000, many more than analysts had expected. Figures for May were also revised upwards, from 532,000 to 562,000. ?EUR??,,????'??? Courtesy of Technical Innovations

The greatest drop could be in commercial and industrial sectors. Feeling the effects of the struggling overall U.S. economy, nonresidential construction spending is expected to decrease by 16 percent in 2009 and drop by another almost 12 percent in 2010 in inflation adjusted terms. Commercial projects will see the most significant decrease in activity.

?EUR??,,????'??While there are some indications that the overall economy is beginning to recover, nonresidential construction activity typically lags behind the rest of the economy,?EUR??,,????'?? said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. ?EUR??,,????'??Commercial facilities such as hotels, retail establishments and offices will feel the decline most dramatically. The institutional market will fare much better as stimulus funding becomes available for education, healthcare and government facilities.?EUR??,,????'?? – Courtesy of AIA