January 2016 Commercial Starts Defy Usual Seasonal Decline

February 17, 2016
January 2016 Commercial Starts Defy Usual Seasonal Decline

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: http://www.cmdgroup.com/