California Construction Volume on a Steady Improvement Curve.

SAN FRANCISCO--(BUSINESS WIRE)--Aug. 29, 1996--California construction volume for July totaled $3.08 billion while continuing to show an overall increase, a good indicator that the state's largest goods producing industry remains on a steady improvement curve.

According to statistics collected by the Construction Industry Research Board (CIRB) and run through analysis by Lamberson Koster & Company, surety and insurance brokers in San Francisco, the July total of $3.08 billion is up 1.4 percent from June and up 12.8 percent from July 1995.

Ben Bartolotto, Director of the Research Board, reports total construction volume in the first seven months climbed to $18.7 billion, up from $17.6 billion during the first seven months last year, reflecting a 6.0 percent increase.

Seasonally adjusted, the July 1996 contract total is $32.20 billion, up 4.9 percent from June, and up 1.4 percent from July 1995.

The California construction volume, measured by building permits and contract awards, shows a positive increase in all categories with the exception of multi-family housing units which showed a decline in both the prior and year-ago months. Stated at an annual rate, the July housing total of 89,700 units is up 1.7 percent from June, but down 0.2 percent from July 1995. The single-family rate of 78,500 in July is up 7.8 percent from June, and up 8.0 percent from July 1995. However, multi-family units fell to 11,200 in July, down 27.3 percent from June, and down 34.9 percent from July 1995.

According to Lamberson Koster analysts, private nonresidential building totals $929.3 million in July. Adjusted for seasonality, this is an annual rate of $9.25 billion, up 4.9 percent from June, and up 4.2 percent from July 1995. Nonresidential building totals for the first seven months is $5.44 billion, up 12.8 percent from the year-ago period.

During the first seven months, Santa Clara County's nonresidential building total of $750.3 million, up $256.2 million year-to-date, accounted for 41.5 percent of the state's increase. Additionally, Santa Clara County along with Orange County, Contra Costa and San Francisco counties, accounted for 80 percent of the state's nonresidential increase during the first seven months.

Heavy construction contracts posted a decline in July with contracts totalling $718.6 million. The July total is down 7.2 percent from June, but up 0.1 percent from July 1995. Seasonally adjusted, the Lamberson Koster analysts say the total is an annual rate of $8.25 billion, up 13.0 percent from June, but down 2.0 percent from July 1995.

On the good news ledger, Bartolotto is revising the CIRB 1996 heavy construction forecast up $100 million to $6.80 billion (was $6.79 billion) in total contracts. In addition, the 1997 forecast for streets, highways and bridges is being increased to $2.76 billion, up 10.0 percent from 1996. This increase, says Bartolotto, is due mainly to increased funding as a result of Proposition 192, the Seismic Retrofit Bond Act, approved by voters in March. Some of the highway activity increase anticipated this this year will evolve as an indirect result of the passage of Proposition 192.

For the year, CIRB is forecasting a 4.3 percent increase in total construction to $31.14 billion from 1995's $29.85 billion, with a 14.2 percent increase in 1997 to $35.14 billion.

CONTACT: Construction Industry Research Board

Ben Bartolotto, 818/841-8210

or

Willow Communications

Tom Willow, 916/974-7556