September construction starts rise 10 percent

By |  October 20, 2014

According to McGraw Hill Construction, new construction starts in September rose 10 percent to a seasonally adjusted annual rate of $604.1 billion. This brought construction activity up to its highest level so far during 2014 and increased the Dodge Index to 128.

Nonresidential building experienced a large gain, increasing 15 percent to $228.5 billion. The institutional building group rose 33 percent, while transportation terminal work was up 171 percent. In addition to this, educational facilities climbed 34 percent, healthcare facilities fell 44 percent and the manufacturing plant category rose 105 percent.

Nonbuilding construction rose 38 percent at $162.9 billion with the electric utility category climbing 107 percent, public works project types advancing 26 percent and river/harbor development rising 40 percent. Highways and bridges also rose 8 percent. Of the public works category, water supply construction was the only section to lose momentum, falling 27 percent.

Finally, residential building dropped 9 percent to $212.7 billion. This decrease is accounted for by a 23 percent decrease in multifamily housing and a 3 percent decrease in single family housing.

In the first nine months of 2014, there has been a 5 percent gain for total construction. Since the start of the year, nonresidential building has climbed a total of 17 percent, residential building has increased 6 percent and nonbuilding construction decreased 9 percent. Altogether, total construction starts thus far in 2014 have revealed gains for the South Central, South Atlantic, Northeast, Midwest and West regions.

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