New construction starts hold steady in July

According to Dodge Data & Analytics, new construction starts in July remained unchanged from June at a seasonally adjusted annual rate of $629.4 billion. The Dodge Momentum Index also remained at 133.

In July, nonresidential building rose 2 percent to $194 billion. The commercial categories fell 12 percent, while office construction rose 7 percent, store construction increased 6 percent and warehouse construction improved 28 percent.

The institutional building group fell 1 percent in July, with educational facilities dropping 20 percent and healthcare facilities decreasing 15 percent. Transportation-related buildings jumped 120 percent, the amusement and recreational building category increased 49 percent, the public buildings category rose 58 percent and church construction increased 32 percent.

Residential building advanced 4 percent in July to $288.5 billion, with multifamily housing increasing 21 percent. The increase was due to 16 multifamily projects valued at $100 million or more beginning in July.

Finally, nonbuilding construction in July dropped 9 percent to $146.9 billion. The decline came as a result of diminished activity for more of the public works categories, which decreased 13 percent. During July, highway and bridge construction fell back 19 percent, and all of the environmental public works categories fell. Despite this, the electric utility and gas plant category increased 9 percent.

“The first half of 2015 showed wide swings in the pattern of total construction starts, affected by the presence or absence of unusually large projects,” says Robert Murray, chief economist for Dodge Data & Analytics. “Amidst these top-line swings, the underlying trend of activity has been generally upward relative to last year.”