Show BUSINESS end the STOCK MARKET by BABSON'S REPORTS Copyright 1972 1971 THE BUILDING OUTLOOK Spending on public and private construction con con- construction during 1971 totaled a record record- shattering billion according to the US U.S. Department of Commerce Of this amount expenditures for public construction construction con con- accounted for 30 billion the private sector for 79 billion For the current year total construction outlays are arc expected to advance 8 percent to billion with private construction amounting to 88 86 billion public spending to 32 billion Looking ahead to 1973 and beyond a continued high level of construction activity activity ac ac- ac may be expected as a result of the enormous task of replacing the nations nation's nations nation's na na- na tion's outdated industrial and commercial commercial commer commer- cial facilities as well as meeting sustained sustained sus sus- tamped demand for better housing and more service establishments of all types By Dy the year 1975 total construction Is likely to reach a historic height of billion 38 percent above the record pace set during 1971 HOMEBUILDING PEAK PASSED A n unsurpassed housing units were started last year year- 43 year 43 percent more than the units begun the previous previous pre pre- year and about 7 percent above the earlier high of starts in 1950 The hot pace of residential building building build build- ing continued into 1972 Recently however how ever there have been indications that the the housing boom has passed its peak For example although new housing starts for the second quarter of 1972 rose 16 percent above the year-earlier year rate on a seasonally adjusted basis they were just about even with the number recorded during the first quarter This broke a string of eight consecutive quarterly quarterly quarterly terly housing records August starts however rose 12 percent above the July level Although the housing boom may have peaked strong pent up demand and availability of term long money that residential building should continuo continue at a well-sustained well level through 1972 and into 1973 PRIVATE NONRESIDENTIAL BUILDING Private nonresidential construction commercial religious educational educational ional tonal inched hospital ahead only 4 percent percent per per- cent last year as a result of a low rate of utilization in the industrial sector and receding demand In the office of fice Lice building division This year however how how- ever a more impressive gain is antici gated PUBLIC UTILITIES ON RISE Public utility construction was second only to residential construction in terms of percentage gain last year With a record volume of 14 billion expected to tobe tobe tobe be spent erecting gas electric and telephone telephone tele tele- phone facilities this year the category should once again be a pacesetter in terms of percentage Improvement Threats of power lower shortages and growing needs of the residential and business communities are arc sparkling acceleration of utility plant construction PUBLIC CONSTRUCTION PROBLEMS Public construction was hampered in 1971 by declining revenues of local communities communities com com- a temporary slowdown in the disbursement of federal aid funds and difficulties caused by high interest rates and rapidly rising costs Public education education tion was especially weak In 1971 and a further decline in this category Is an an- |