F.W. Dodge Report Ties Rise To Less Severe Weather; Residential Jobs Strong
NEW YORK -- New construction contracts climbed a seasonally adjusted 12% in January from the previous month, reflecting improved weather conditions, F.W. Dodge Co. said.</br></br>In its monthly survey of construction-contract activity, the forecasting unit of McGraw-Hill Inc. said new construction in January totaled $13.75 billion. The rebound "seemed to confirm that the unusually severe weather early in the winter upset the seasonal rhythm of the construction business," said George A. Christie, vice president and chief economist for F.W. Dodge.</br></br>Mr. Christie noted that when the January and December contract totals are averaged, the rate of activity has been nearly level since last summer, when interest rates stabilized. "Whether constuction activity advances or recedes from this plateau will depend mostly on the next development in the credit market," he said.</br></br>Residential building contracts were particularly strong in the January rebound, Dodge said. The value of contracts for one-family homes, apartments and condominiums, hotels and motels was $6.6 billion in January, up 16% on a seasonally adjusted basis.</br></br>Nonresidential building contracts, particularly for factories, warehouses and offices, also rebounded sharply in January, rising an adjusted 14% in January to $5.3 billion after an 8% decline in December.