August construction starts dropped 4 percent after a very strong July, according to McGraw-Hill Construction, a division of the McGraw-Hill Companies. The decline was primarily attributed to a slower pace in nonresidential construction. Still total construction starts totaled a seasonally adjusted annual rate of $573.3 billion, on pace for a 5 percent increase over 2003.

“Single family housing is still exceptionally strong and the broad trend for commercial building this year is generally upward, even with the reduced amount of construction starts in August,” said Robert Murray, vice president for economic affairs, McGraw-Hill Construction.

Nonresidential building in August fell 7 percent. Weaker activity was registered by the major commercial categories — stores were down 4 percent; warehouses 7 percent; offices 14 percent and hotels 32 percent. However, July office construction was influenced by the start of the $800 million Freedom Tower in New York. August featured the groundbreaking of the $400 million headquarters for the New York Times in midtown Manhattan and an $80 million federal office building in Chicago.

Residential building dropped 2 percent in August, with a 3 percent drop in single-family dwellings.

Nonbuilding construction fell 2 percent in August, with public works construction dropping 1 percent.

The gain in total construction during the January through August period of 2004 was 10 percent, with residential building rising 18 percent; nonresidential building up 2 percent; nonbuilding construction up 1 percent. The largest regional increase was the South Atlantic, up 15 percent; the West rose 12 percent; the Northeast 9 percent; South Central 8 percent and the Midwest 6 percent.