Econowatch

The San Fernando Valley and Southern California continued to see a surge in new construction in May, although construction statewide began to show signs of slowing. Building permit applications for the San Fernando Valley jumped 10 percent in May 1999 over the same month last year, according to the city Department of Building and Safety. But the estimated cost of the projects dropped 10 percent in that same period, from $58.2 million to $52.5 million. The Valley projects filed with the city in May with the highest estimated value include a $5.3 million office/warehouse project in Woodland Hills and a $4.2 million retail project in Porter Ranch. Statewide, construction on residential, commercial and industrial projects declined 11 percent to $3.7 billion in April from the same month last year, according to the latest figures by the Construction Industry Research Board. The decrease is mainly the result of a drop in San Francisco Bay Area construction, said Ben Bartolotto, research director for the board. “The Bay Area really peaked a year or two ago,” he said. “Southern California (construction) took off later.” Construction in Southern California is expected to continue to grow over the next two years, he said. “Job growth is still strong. There are some huge projects in the pipeline.”