According to Census Bureau reports, the value of construction put in place soared in December to an 11th consecutive record of $1.03 trillion at a seasonally adjusted annual rate. The preliminary full-year total for 2004 was $998 billion, a 9-percent increase from 2003.

"These numbers mark a real turnaround for nonresidential construction and show good acceleration at year-end," said Kenneth D. Simonson, chief economist for the Associated General Contractors of America (AGC). "After falling for three years, private nonresidential construction wound up 4-percent higher than in the previous year, with December's total a solid 6-percent higher than in December 2003. Public construction was 3-percent higher for the full year and 9-percent ahead in December."

Simonson noted that part of the gain was due to steep price increases for many construction materials. "In 2005, I expect prices to rise less dramatically, and for more construction categories to keep expanding in inflation-adjusted terms. However, it is essential that Congress approve an adequate level of highway spending on a long-term basis, or this important sector will slip badly by 2006.

"It's especially encouraging to see how many separate categories wound up in the plus column for the year," Simonson added. "The lodging sector, which has strengthened all year, jumped 19 percent from 2003 to 2004. Health care construction was almost 10-percent higher. Categories that I'd rank as pleasant surprises included office and commercial construction, which both rose 6 percent, and manufacturing, which ended the year 2-percent higher after lagging nearly every month. And both major public categories, education and highways and streets, finished 4-percent ahead of 2003."