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January 2016 Commercial Starts Defy Usual Seasonal Decline

Non-residential starts in January were 9.8 percent higher than December 2015

February 17, 2016

 $3 Million Marriott Hotel in Nashville headlines CMD's Top 10 Largest Construction Starts in January.

Although the number of monthly building starts are not yet at the pre-Great Recession peak, CMD reports the numbers are getting closer.

CMD announced today that January’s level of U.S. construction starts, excluding residential work, was $24.7 billion, an increase of 9.8 percent versus December. The nearly double-digit percentage increase was noteworthy since there is usually (i.e., average over 10-years-plus) a December-to-January decline, due to seasonality, of 8.5 percent.

All three major types of-structure categories reporting month-to-month starts increases in January, institutional construction was the leader at +21.3 percent, followed by heavy engineering/civil project seeing a +13.6 increase, with commercial construction showing a modest +3.8 percent increase.

Comparing standalone January 2016 with its counterpart in 2015, there were increases in all categories.

Heavy engineering starts valued at $10.051 billion recorded the largest leap forward with a 20.1 percent increase. Road and highway work accounted for nearly 50 percent of the category’s total.

Commercial starts, valued at $7.037 billion, increased 13.2 percent, with hotel and retail starts shooting up +141 percent.

Institutional starts valued at $6.745 billion were more modest, up 2.6 percent, with school and college projects accounting for nearly 60 percent of that growth.

To read CMDgroup's complete report, click here.

Source: CMDgroup.com

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