CONSTRUCTION OFF 1.2% DROP-OFF BLAMED ON STATE'S PROLONGED BUDGET WOES.Byline: Gregory J. Wilcox Staff Writer BURBANK - Construction values in California slipped 1.2 percent during June to $6.2 billion - the first monthly decline in five months - thanks to the state's prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. budget crisis, an industry tracker said on Tuesday. Embattled em·bat·tled adj. 1. Prepared or fortified for battle or engaged in battle: embattled troops; an embattled city. 2. Gov. Gray Davis signed the budget last Saturday. But contractors can expect funding for public works public works pl.n. Construction projects, such as highways or dams, financed by public funds and constructed by a government for the benefit or use of the general public. Noun 1. projects to tighten because of delays caused by the budget stalemate stale·mate n. 1. A situation in which further action is blocked; a deadlock. 2. A drawing position in chess in which the king, although not in check, can move only into check and no other piece can move. tr.v. , said the Burbank-based Construction Industry Research Board. While falling on a monthly basis, June's total increased 7.1 percent from the June 2002 total of $5.87 billion. Softening could continue in the second half of the year since a lot of permit activity was front-loaded in the first part of 2003 in anticipation of increases in permit fees and the state's muddled mud·dle v. mud·dled, mud·dling, mud·dles v.tr. 1. To make turbid or muddy. 2. To mix confusedly; jumble. 3. To confuse or befuddle (the mind), as with alcohol. financial outlook, said Ben Bartolotto, the board's director. ``Public works construction can still benefit in the (year's) second half from state and local bond issues approved by voters in 2002 for schools, state universities and water projects,'' he said. In June all sectors except heavy construction, which consists of civil works projects, were down, the board said. Nonresidential construction values - such as offices and industrial buildings - totaled $1.22 billion in June, down 2.9 percent from May and 9.1 percent from 2002. Residential construction will likely have its best year since 1989 while decreases are expected in commercial and industrial construction because of economic turmoil in Silicon Valley and the Bay Area. About 186,000 new housing units are expected to be permitted this year but that is still far short of the 250,000 units state officials say are needed to meet demand. Bartolotto expects a 1.8 percent increase in construction dollar volume to $65.39 billion this year versus 2002. Jack Kyser, chief economist The Chief Economist is a single position job class having primary responsibility for the development, coordination, and production of economic and financial analysis. It is distinguished from the other economist positions by the broader scope of responsibility encompassing the for the nonprofit A corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive. Nonprofits are also called not-for-profit corporations. Nonprofit corporations are created according to state law. Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. County Economic Development Corp., said the construction sector offers a mixed picture. ``The residential sector so far looks extremely healthy but we've been through a long dry stretch,'' he said. Gregory J. Wilcox, (818) 713-3743 greg.wilcox(at)dailynews.com CAPTION(S): chart Chart: BUILDING SWOON SOURCE: Construction Industry Research Board |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion