According to Reed Construction Data, construction starts were up 4 percent in January, with a 47 percent increase in commercial building starts from December 2009. However, this is not a sign that the recession has drastically improved, but that "a hint of improvement" may be coming.
Despite this news, the building recession seems to be deepening still. Market indicators used to measure monthly nonresidential construction are negative, and many projects are being delayed or cancelled, according to another Reed report. Some projects are being halted due to lower than expected building operating income, and the inability to obtain financing is still causing cutbacks as well. The U.S. Architecture Billings Index is at its lowest level in the past six months, according to a Reuters article. The AIA's Kermit Baker cites strict lending, a "skittish" bond market, and declining property values among the problems aggravating the recession.
For more information on January's construction starts, please click here. For market indicator charts, and information on the building recession, please click here. To access the Reuters article on the Architecture Billings Index, please click here.
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