Dodge Data & Analytics, New York, has reported construction starts decreased 10 percent in December 2018. Total construction starts in 2018 were up 0.3 percent compared with 2017.
"The monthly pattern of construction starts was mixed during 2018, as elevated activity in June and October was offset by weaker activity in the months immediately following, with the end result being that the 2018 dollar amount of construction starts was slightly above the previous year," says Robert A. Murray, chief economist for Dodge Data & Analytics. "By recent standards, the overall level of construction starts in 2018 can be regarded as healthy, but the substantially slower rate of growth compared to the prior six years is suggestive of a market that's close to a peak."
Nonresidential building construction decreased 14 percent in December 2018. In the commercial category, store construction grew 32 percent; manufacturing plant construction declined 2 percent; warehouse construction fell 24 percent; office construction decreased 34 percent; and hotel construction plunged 41 percent. In the institutional category, public buildings rose 48 percent; educational building construction increased 27 percent; churches advanced 18 percent; transportation terminal construction grew 1 percent; health care facility declined 16 percent; and amusement-related construction dropped 42 percent.
Residential building construction fell 8 percent in December 2018. Single-family housing dropped 5 percent, and multifamily construction fell 15 percent.
Nonbuilding construction fell 9 percent in December 2018.
During 2018, nonresidential building was down 1 percent compared with 2017. Residential building increased 5 percent, and nonbuilding construction dropped 5 percent. By geographic region, the South Central increased 10 percent; Midwest grew 4 percent; South Atlantic rose 1 percent; West climbed 1 percent; and Northeast dropped 15 percent.
