Dodge Data & Analytics, New York, has reported construction starts decreased 15% in April. Total construction starts in April were down 8% compared with April 2018.
"The construction start statistics can be volatile on a month-to-month basis, and that's certainly been true in March and April, as a 16% jump was followed by a 15% decline," says Robert A. Murray, chief economist for Dodge Data & Analytics. "Much of the volatility can be attributed to the presence or absence of large projects—in March there were 10 projects valued each at $500 million or more that reached groundbreaking, while April saw only two such projects. Amidst this volatility, there are several trends about 2019 construction activity that are beginning to emerge.
"Overall construction activity continues to show deceleration around an up-and-down monthly pattern, with a varied performance by major construction sector," Murray continues. "The public works side of nonbuilding construction got off to a slow start in 2019, which at least through March was partially offset by an upturn for electric utilities/gas plants. Some improvement for public works is expected as the current year proceeds, given the fiscal 2019 federal funding approved back in February, as well as the continued support of state construction bond measures. Nonresidential building is staying close to its pace of last year, helped by continued strength for office buildings, hotels, educational facilities and transportation terminals. The multifamily side of residential building is retreating, even with the occasional monthly upturn, while single-family housing has not yet provided evidence that it can rebound from the slower pace that took hold toward the end of last year."
Nonresidential building construction decreased 18% in April. In the commercial category, office construction dropped 9%; warehouse construction declined 12%; store construction slid 25%; and hotel construction fell 51%. In the institutional category, transportation terminal construction surged 159%; educational building construction increased 6%; public buildings dropped 22%; health care facility construction decreased 29%; amusement-related construction fell 50%; and manufacturing plant construction fell 72%.
Residential building construction fell 1% in April. Single-family housing fell 4%, and multifamily construction grew 5%.
Nonbuilding construction decreased 31% in April.
During the first four months of 2019, nonresidential building was down 3% compared with the same time period in 2018. Residential building decreased 12%, and nonbuilding construction dropped 10%. By geographic region, the South Central increased 1%; Northeast dropped 7%; West declined 9%; South Atlantic fell 11%; and Midwest declined 17%.
