Both single and multifamily starts decreased says Dodge Data & Analytics
New construction starts declined in September as the residential and non-building sectors posted decreases.
Overall starts were down 5% to a seasonally-adjusted annual rate (SAAR) of $774. Billion according to the latest report from Dodge Data & Analytics, with its Dodge Index down to 164 (it was benchmarked at 100 in 2000) from 173 in August. That meant the lowest reading for the index since May.
Total construction starts were 3% lower in the first 9 months of 2019 compared to the same period of 2018 due to pullbacks in both residential and non-residential construction starts.
“Large projects continue to make their presence felt in the monthly statistics, sometimes obscuring underlying trends,” stated Richard Branch, Chief Economist for Dodge Data & Analytics. “Nevertheless, construction starts have certainly throttled back in 2019 due to mounting uncertainty over the country’s economic health.”
Residential construction starts were down 6% to $300 billion (SAAR) and both single family and multifamily also decreased 6% month-over-month. The sector total was led by a $228 million development in Chicago, the Lakeshore East – Cirrus Apartment Tower.
Non-residential construction starts edged up 1% to $287 billion (SAAR) with a large automotive plant boosting the manufacturing sub-sector total by 243%. Meanwhile, the commercial sub-sector was down 14% from a very strong August due a pull-back in offices, while institutional was down 1%.
