Markets Growth 'Strong, Balanced'

"Today's report on construction spending shows the industry is hitting on all cylinders with strong, balanced growth," said Ken Simonson, Chief Economist for The Associated General Contractors of America (AGC) in early April. Simonson was reacting to a Census Bureau report that construction

"Not only was the overall total up strongly from a year ago, but all major segments showed similar growth," Simonson said. "For the first time since the 2001 recession, private nonresidential construction led the parade with a 9.6-percent increase from the year-ago pace. Private residential construction was 7.1 percent higher and public construction, 6 percent higher.

"The year-to-date, or two-month, totals actually provide a more meaningful comparison, given the extremely mild weather in January and more seasonal conditions in February," Simonson added. "On a two-month basis, there were several segments that showed exceptional growth. Shopping center construction leaped 61 percent, after swelling nearly 40 percent in 2005 and 25 percent in 2004. Hospital construction grew 22 percent, while manufacturing and commercial warehouse construction climbed 20 percent. The previously lackluster office segment was up 18 percent."