Dodge Data & Analytics, New York, has reported construction starts decreased 7 percent in November 2018. Total construction starts in November 2018 were up 1 percent compared with November 2017.
"Amidst the monthly ups-and-downs, the construction start statistics show that on balance the construction industry expansion was still underway in 2018, although the rate of growth has slowed considerably from the 7 percent gains for total construction reported during 2016 and 2017," says Robert A. Murray, chief economist for Dodge Data & Analytics. "Several features stand out about the pattern of construction starts during 2018. Nonresidential building through 11 months has stayed within 2 percent of the enhanced activity registered during 2017, reflecting a varied performance by project type. The commercial building segment revealed more growth in dollar terms for hotels and office buildings, with the latter boosted by the start of such projects as the $1.8 billion Spiral office tower in New York NY, a $665 million office tower on North Wacker Drive in Chicago IL, as well as several massive data center projects. The institutional building segment has benefitted from more growth for educational facilities and amusement-related projects, but transportation terminal starts have settled back from an exceptional amount in 2017 to what's still a healthy volume in 2018. Manufacturing plant construction has shown wide swings month-to-month, yet for 2018 as a whole this project type continues to trend upward.
"With regard to residential building, multifamily housing has seen renewed growth in 2018 after its loss of momentum in 2017, but single-family housing has essentially plateaued following the advances registered at the outset of 2018," Murray continues. "For nonbuilding construction, the public works segment has shown growth for highways and bridges, helped by the 2018 federal omnibus appropriations bill passed back in March, although pipeline construction starts have eased back from a robust 2017. New electric utility/gas plant starts, despite the occasional jump such as reported in November, have continued to trend downward over the course of 2018."
Nonresidential building construction decreased 15 percent in November 2018. In the commercial category, warehouse construction jumped 43 percent; store construction grew 26 percent; hotel construction rose 22 percent; office construction decreased 2 percent; and manufacturing plant construction plunged 71 percent. In the institutional category, churches climbed 45 percent; educational building construction decreased 6 percent; health care facility declined 8 percent; amusement-related construction dropped 18 percent; public buildings fell 49 percent; and transportation terminal construction plunged 73 percent.
Residential building construction fell 1 percent in November 2018. Single-family housing was unchanged, and multifamily construction fell 3 percent.
Nonbuilding construction fell 2 percent in November 2018.
During the first 11 months of 2018, nonresidential building was down 2 percent compared with the same time period in 2017. Residential building increased 6 percent, and nonbuilding construction dropped 3 percent. By geographic region, the South Central increased 12 percent; South Atlantic rose 3 percent; Midwest grew 3 percent; West climbed 2 percent; and Northeast dropped 16 percent.
