October construction starts increased 12%

November 19, 2020

Dodge Data & Analytics, New York, has reported construction starts rose 12% in October. Total construction starts in October were down 6% compared with October 2019.

“October’s gain was welcome news following the large step back in starts during the previous month,” said Richard Branch, chief economist for Dodge Data & Analytics. “The month’s increase, however, does not mean all is well with the economy and construction sector. The economy lost traction as the stimulus provided by the CARES Act ended. With the next wave of COVID-19 infections looming, the economy will continue to lose steam until more fiscal stimulus is provided and a vaccine has been widely adopted. Until that has occurred, the construction sector will continue to be volatile.”

Nonresidential building construction increased 19% in October. Manufacturing starts rose 26%; commercial construction starts climbed 23%; and institutional starts grew 15%.

Residential building construction rose 2% in October. Single-family housing dropped 9%, and multifamily construction increased 62%.

Nonbuilding construction rose 25% in October.

For the 12 months ending in October, nonresidential building was down 17% compared with the 12 months ending October 2019. Residential building rose 4%, and nonbuilding construction fell 7%.

Tags: Business | Residential | Commercial | Trends


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