October construction starts fall 4 percent

By |  November 24, 2014

According to Dodge Data & Analytics, the value of new construction starts fell 4 percent in October to a seasonally adjusted annual rate of $589.8 billion, lowering the Dodge Index to 125.

October’s construction starts dropped 6 percent from September, with nonresidential building and nonbuilding both losing momentum.

Nonbuilding construction decreased 9 percent to $148.7 billion. Most of the decline was due to a 67 percent fall for electric utilities. Despite this, there was an 8 percent rise in the public works group, a 27 percent increase in highway and bridge construction and an 80 percent growth in sewer and waste disposal projects.

Residential building grew 11 percent to $245.9 billion. Multifamily housing grew 40 percent and single-family housing remained unchanged.

Finally, nonresidential building fell 14 percent in October to $195.2 billion. The decrease was due to a 19 percent decrease in the institutional building group, a 57 percent decline in the amusement and recreational category, a 16 percent drop in transportation terminals and a 23 percent fall in public buildings. Despite this, healthcare facilities rose 11 percent and church construction improved to 17 percent.

The commercial building group maintained the same pace as it did in September, with a 12 percent increase in store construction and a 31 percent rise in warehouse construction. However, office construction fell 7 percent, hotel construction dropped 8 percent and the manufacturing plant category decreased 36 percent.

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