A recent report from Alabama's Birmingham Business Journal notes that construction equipment moved on far fewer commercial projects in August.
The Journal, which relied on a report from McGraw-Hill Construction, noted that commercial construction contracts for future projects fell to almost $205.8 million in the state. That number represents a 95 percent drop when compared to August of 2008, when commercial contracts came in at $3.9 billion.
Commercial construction in the Birmingham area dropped to almost $92 million, a 30 percent decline when compared to August of 2008.
"Statewide, year-to-date, commercial dropped 63 percent over the first eight months of last year, residential dropped 22 percent and nonbuilding remained flat," the Journal noted.
Though commercial construction fell for August, both residential and nonbuilding contracts saw an increase. Residential construction increased by 5 percent to $285.5 million. Nonbuilding contracts, including highways and infrastructure, increased by 40 percent to $100.6 million.
According to IHS Global Insight, commercial construction spending in the nation saw an annual decline of 27.9 percent. However, the company noted that it expects residential construction to increase by 4.8 percent during the fourth quarter of this year.