Building Contracts Bounce Back In May

Bouncing back from a weak April, nationwide construction contracts in May advanced 8 percent to $281.6 billion, according to F.W. Dodge Division of McGraw-Hill Cos.

Nonresidential building climbed 6 percent in May. Experts cite a mild surge in birthrate in the past decade in fueling a demand for new school construction. Construction contracts for hospitals, detention facilities, churches and recreational facilities also increased.

Residential construction in May came to $117.3 billion, virtually unchanged from April. Single-family housing slipped 1 percent in contract value, but the multifamily segment climbed 7 percent. Regionally, the South Atlantic and South Central states saw the biggest increase, while the West remained unchanged.

With the housing market appearing to stabilize after eight consecutive months of decline, May’s figures were good news to industry observers.