McGraw Hill Forecasts 1% Increase In Construction Starts for 2004

McGraw Hill Construction expects the value of construction starts to increase 1% to $508.9 billion in 2004. Single-family housing will dip 2% from last year's record level due to higher mortgage rates. The number of dwelling units will drop 5% to 1.29 million, which is still the third highest in 25 years. After dropping 10% in 2003, the public construction market is slated to show signs of recovery in 2004. Hotels and warehouses will also see double-digit growth, and manufacturing construction will rise 9%. Electric utilities, however, could plunge 19%, and contractors could see a slowdown in health-care and school construction due to reduced capital spending and state deficits.