Dodge Data & Analytics, New York, has reported construction starts decreased 11% in October. Total construction starts in October were down 4% compared with October 2018.
“Concern over the health of the U.S. economy continues to play a key role in the pullback in starts over the past few months,” says Richard Branch, chief economist for Dodge Data & Analytics. “However, solid real estate fundamentals (such as vacancy rates) in addition to stable public funding will continue to support a modest level of construction activity across both public and private projects.”
Nonresidential building construction decreased 20% in October. The decline follows a strong September that had two projects valued at nearly $1 billion break ground. Commercial construction starts fell 3% in October with gains in the office and hotel sectors. Institutional starts fell 20% in October.
Residential building construction fell 2% in October. Single-family housing dropped 7%, and multifamily construction rose 14%.
Nonbuilding construction decreased 14% in October.
During the first 10 months of 2019, nonresidential building was down 7% compared with the same time period in 2018. Residential building decreased 6%, and nonbuilding construction rose 2%.
