Dodge Data & Analytics, New York, has reported construction starts continue to decline, falling 2% in February.
“With spring just around the corner, hope is building for a strong economic recovery fueled by the growing number of vaccinated Americans,” said Richard Branch, chief economist for Dodge Data & Analytics. “But the construction sector will be hard-pressed to take advantage of this resurgence as rapidly escalating materials prices and a supply overhang across many building sectors weighs on starts through the first half of the year.”
Nonresidential building construction fell 7% in February. Commercial construction starts dropped 8% as warehouse construction declined, and institutional starts decreased 8%.
Residential building construction fell 7% in February. Single-family housing dropped 7%, and multifamily construction decreased 7%.
Nonbuilding construction grew 20% in February amid gains in the miscellaneous nonbuilding sector, environmental public works, and highway and bridge starts.
For the 12 months ending February, nonresidential building was down 28% compared with the 12 months ending February 2020. Residential building rose 4%, and nonbuilding construction fell 13%.