The Michigan Daily- Tuesday, February 4, 1992 - Page7

Construction levels shrink 9.3 percent

South Quad fire forces

WASHINGTON (AP) - Con-
struction spending on homes, office
buildings and other projects shrank
9.3 percent in 1991, the sharpest
contraction since World War II, the
government said yesterday.
The severe cutback was concen-
trated in the first half of the year
and spending actually picked up ill
the past six months, though it was
down again in November and De-
cember.
Separately, a survey of 300 cor-
porate purchasing executives sug-
gested that as the year began the rest
of the economy remained sluggish
and the manufacturi ng sector con-
tinued to decline.
The National Association of
Purchasing Management said yes-
terday its index of business activity

was unchanged in lJanuary at 47.4
percent. A reading of less than 50
percent suggests manufacturing is
declining: a reading under 44.5 per-
cent would indicate the overall
economy was shrinking.
The Commerce Department said
residential, non-residential and gov-
ernment spending on construction
totaled $404.9 billion last year.
That was down from $446.4 billion
in 1990 and marked the lowest level
since 1985, when $377.4 billion was
spent on apartments, factories and
other private and government
buildings.
Last year's decline also was the
first since the recession year of
1982, when spending fell 4.0 per-
cent. It was the steepest since spend-
ing plunned 36.6 percent in 1944.

Economist David Berson of the
Federal National Mortgage Associ-
ation said most of the decline oc-
curred during the first half of the
year. Construction spending actu-
ally picked up at a 5.7 percent annual
rate in the last six months, he said.
Analysts attributed the collapse
trom January through June to the
Persian Gulf War, the recession and
a glut of already-built structures
such as office buildings and shop-
ping centers.
Spending on residential build-
ings and on government projects.
fell in December and contributed to
a 0.2 percent decline for the month
in overall construction outlays. To-
tal expenditures were $407.4 bil-
lion at a seasonally adjusted annual

rate, compared to $408.4 billion in
November.
Spenling on single-family homes
advanced 1.2 percent in December,
but that was more than offset by a 7
percent plunge for apartments and
other multi-family buildings. For
the year, single-family outlays fell
12 percent, to $95.8 billion, while
mnulti-funi ly spending dropped 22
percent, to $14.9 billion.
Berson forecast continued im-
provement in the residential sector,
particularly single-family homes.
The Commerce Department re-
ported last week that applications
for building permits, often a barom-
eter of future activity, jumped in
December.

residents to evacuate

4T

by Joshua Meckler
Daily Staff Reporter
A clothing dryer fire broke out
last night in a South Quad loading
dock, forcing the evacuation of the
building's residents for about 15
minutes.
The fire was discovered in a
building services dryer by a hous-
ing security officer, said Irita
B arksdale, another security officer.
Barksdale said she pulled the
fire alarm, notified the Ann Arbor
Fire Department, and then she and
the other officer extinguished the
small fire. When the fire depart-

r
ment arrived, Barksdale said, the
fire was already out.
Barksdale said the dryer was
"definitely oft" when she reachej.
it. "Apparently," she said, "lint hatc
built up. Apparently (building sere.
vices) used it today, and it jtugt
smoldered.
She added that the fire depare
ment will issue a report on tli.
cause of the fire.
Sally Mason, a resident directort
in South Quad, said a dryer fire is
nothing new. "It's not uncolmfom ,
from the age of some of the dryer;
and the amount of use they've hadl


Ii

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MOCK TRIAL JURORS NEEDED: if you
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OFFICE ASSISTANT WANTED. Duties
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deadline 2/14. Send resume and letter to
GEO, 802 Monroe, Ann Arbor, MI 48104.
PEER COUNSELORS NEEDED by LSA
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WORK STUDY in Communication Library.
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HELP WANTED
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ANNOUNCEMENTS .
ADOPTION - Devoted father, full-time
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BNR has the resoureces and
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-

ANN ARBOR, MI
Thursday, February 6
University of Michigan

:

Michigan Union
Kuenzel Room
1-2 p.m. Singers

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