Power plant pullback triggers October construction starts retreat

The value of new construction starts retreated 14 percent in October to a seasonally adjusted annual rate of $434.9 billion, according to McGraw-Hill Construction.

Much of the decline was due to a sharp pullback by the electric power and gas plant category after a robust September. If this category had been excluded from the month-to-month comparisons, total construction starts in October would have registered a 3 percent gain.

Greater activity was, however, reported in October for the public works sector, while both nonresidential building and housing settled back. Through the first 10 months of 2012, total construction starts on an unadjusted basis came in at $390.4 billion, a 4 percent gain relative to the same period from one year ago.