U.S. construction starts moved up in August, but one sector
considered crucial to steel consumptionnonresidential
Starts last month rose
2 percent over July to a seasonally adjusted annual rate of
$490.2 billion, according to McGraw Hill Construction, a
division of McGraw Hill Financial Inc., New York.
activity rose 4 percent in August while nonbuilding
constructionwhich includes public works and electric
utilitiesreversed a July downturn with an 11-percent
surge, McGraw Hill said.
construction, which is critical to structural sections, plate
and structural pipe and tubing, fell 8 percent in August to an
annual rate of $148 billion after rising 9 percent in July.
"A more solid
expansion for total construction requires a greater
contribution from nonresidential building, which has yet to
occur," Robert Murray, McGraw Hill Constructions vice
president of economic affairs, said in a statement.
One service center
executive said that while his company hasnt yet seen a
sustained improvement in its eastern nonresidential
construction markets, he sees "money on the sidelines" eager to
finance new projects. But political deadlock in Washington is
undermining the stable outlook thats necessary before
those projects get the green light, he said.