Construction starts fall in November, but up for the year

By |  December 21, 2015

At a seasonally adjusted annual rate of $563.3 billion, new construction starts fell 5 percent in November compared to October, reports Dodge Data & Analytics. These statistics lowered the Dodge Index to 119. Despite this decline, total construction starts during the first 11 months of 2015 were up 8 percent from the same time period in 2014.

Nonresidential building, which dropped 13 percent to $175.4 billion, attributed for much of the fall in November. This decline followed a 33 percent rebound in October. The commercial building category fell 29 percent; office construction dropped 43 percent; the garage and service category decreased 39 percent; store construction fell 30 percent; and warehouse construction retreated 13 percent. Hotel construction remained the same, and the manufacturing plant category rose 38 percent.

The institutional building group in November receded 1 percent. Amusement-related work was down 12 percent; transportation terminals fell 19 percent; and religious buildings decreased 4 percent. Despite this, the educational building category rose 3 percent; healthcare facilities increased 1 percent; and the public buildings category improved 42 percent.

Residential building in November decreased 2 percent to $257.4 billion, with multifamily housing falling 6 percent. This decrease followed a 43 percent increase in October.

Nonbuilding construction remained unchanged from the October reading. The public works categories as a group increased 17 percent in November and the miscellaneous public works category surged 93 percent in November. Additionally, highway and bridge construction rose 16 percent, and the environmental public works categories were mixed, with a 15 percent increase in river/harbor development, a 31 percent decrease in water supply construction and a 42 percent decline in sewer construction.

During the first 11 months of 2015, nonresidential building was down 8 percent, residential building rose 14 percent and nonbuilding construction rose 23 percent relative to the same time period in 2014. According to Dodge Data, the 8 percent increase for total construction starts at the national level during the first 11 months of 2015 was supported by gains from all five major regions, with the South Central region up 18 percent, the Northeast region up 17 percent, the South Atlantic region up 3 percent, the West up 2 percent and the Midwest up 1 percent.

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About the Author:

Allison Kral is the former senior digital media manager for North Coast Media (NCM). She completed her undergraduate degree at Ohio University where she received a Bachelor of Science in magazine journalism from the E.W. Scripps School of Journalism. She works across a number of digital platforms, which include creating e-newsletters, writing articles and posting across social media sites. She also creates content for NCM's Portable Plants magazine, GPS World magazine and Geospatial Solutions. Her understanding of the ever-changing digital media world allows her to quickly grasp what a target audience desires and create content that is appealing and relevant for any client across any platform.

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