At a seasonally adjusted annual rate of $789.3 billion, new construction starts in November decreased 7% from October’s elevated amount, according to Dodge Data & Analytics.
Most of the total construction decline in the latest month was the result of nonresidential building pulling back 15% after its 43% surge in October. There were eight very large projects with a value of $500 million or more (totaling $7.4 billion) that boosted nonresidential building in October. In contrast, there were just three very large projects with a value of $500 million or more (totaling $2.8 billion) that were entered as nonresidential building starts in November.
The other two major construction sectors witnessed slightly reduced activity in November, with residential building down 1% and nonbuilding construction down 2%.
During the January-November period of 2018, total construction starts on an unadjusted basis were $738.2 billion, up 1% from a year ago. Excluding the electric utility/gas plant category, which fell 30% year-to-date, total construction starts in the first 11 months of 2018 were up 2%.
November’s data produced a reading of 167 for the Dodge Index (2000=100), down from a revised 179 for October and returning the Index to a level closer to the 166 average for the full year 2017.
Through the first 11 months of 2018, the Dodge Index averaged 169.
“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% gains for total construction reported during 2016 and 2017,” stated Robert A. Murray, chief economist for Dodge Data & Analytics.