Nonresidential construction on verge of ‘long slide’

Nov 04, 2008 | 06:12 AM | Frank Haflich

Nonresidential construction is "on the verge of a potentially long slide" brought on by the credit freeze and economic slump, although one sector that's been important for structural steel this year remains comparatively healthy.

The Washington-based Associated General Contractors of America (AGC) said that third-quarter construction data from the U.S. Census Bureau shows nonresidential spending edged up only 0.1 percent in September compared with the previous month but was 8 percent higher than in September last year.

The Census data shows the biggest year-on-year nonresidential construction gains were in manufacturing (up 54 percent from September 2007), lodging (up 26.1 percent) and power (up 25.9 percent). The biggest losers in nonresidential construction spending during the month were communications (down 17.1 percent), conservation and development (down 13.3 percent), religious (down 11.6 percent) and commercial (down 10.9 percent).....