“New construction starts increased 1% in June to a seasonally adjusted annual rate of $565 billion,” McGraw-Hill Construction reported Wednesday. For the first six months of 2004, total starts are up 10% from January-June 2003. “Nonbuilding construction (public works and electric utilities rebounded after a weak May [+22% for the month but -4% year-to-date], and offset the mild slippage registered in June by nonresidential building [-2% and -1%] and housing” (-2% and +20%). McGraw-Hill measures about 60% of total construction.
The Federal Reserve reported Wednesday in its Beige Book survey of current business conditions in the 12 Fed districts that “economic activity continued to expand in June and early July, although several districts reported that the rate of growth moderated. The Philadelphia, Atlanta, Chicago, St. Louis, Minneapolis, and Dallas Districts characterized growth rates as ranging from modest (Minneapolis) to solid (Chicago), while New York, Cleveland, Richmond, Kansas City, and San Francisco noted that growth rates slowed somewhat in their districts. Boston cited mixed reports from its business contacts.