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Dodge Report: New Construction Starts in June Drop 7%

Public works retreat from prior month; nonresidential building shows improvement

July 22, 2016

This month's Dodge Report says new construction starts in June decreased 7 percent from the previous month to a seasonally adjusted annual rate of $595.1 billion.

The nonbuilding construction sector (public works and electric utilities) fell sharply after being lifted in May by the start of a $3.8 billion oil pipeline in the upper Midwest and seven large power plant projects totaling $4.3 billion.

Residential building in June edged down with reduced activity reported for both single family and multifamily housing.

At the same time, nonresidential building registered moderate growth in June after sliding back in April and May.

Through the first six months of 2016, total construction starts on an unadjusted basis were $318.1 billion, down 11 percent from the same period a year ago.

The January-June period of 2015 included 13 exceptionally large projects valued each at $1 billion or more, including a $9.0 billion liquefied natural gas export terminal in Texas, an $8.5 billion petrochemical plant in Louisiana, and two massive office towers in New York NY – the $2.5 billion 30 Hudson Yards and the $1.2 billion One Manhattan West.

In contrast, the January-June period of 2016 included only four projects valued at $1 billion or more. If these exceptionally large projects are excluded, total construction starts during the first half of 2016 would be down a slight 2 percent from last year.

For more information, please see Dodge Data & Analytics June 2016 New Construction Report here:

 

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