Beige Book, starts data, airport consultants survey point to plunge in new construction
Evidence is mounting rapidly as to the damage from the pandemic to the economy and construction. “Economic activity contracted sharply and abruptly across all regions in the United States as a result of the COVID-19 pandemic,” the Federal Reserve reported on Wednesday in the latest “Beige Book,” a summary of informal surveys of businesses in the 12 Fed districts from late February to April 5. (Districts are referenced by the names of their headquarters cities.) Comments relevant to construction included the following. Boston: “steep declines in [commercial] construction activity.” New York: “Businesses in construction…noted declines in their selling prices…New construction starts have essentially fallen to zero, and ongoing construction projects have paused, except where considered essential.” Philadelphia: “Philadelphia's commercial real estate construction fell 70% by the end of March—some contractors have no projects.