Dodge Data & Analytics, New York, has reported construction starts dropped 5% in March. Total construction starts in March were up 2% compared with March 2019.
“Considering the calamity that occurred towards the end of March as the fallout from the COVID-19 (coronavirus) hit the economy, construction starts held up rather well,” says Richard Branch, chief economist for Dodge Data & Analytics. “Construction starts in March were unlikely to be greatly impacted as projects that broke ground during the month likely had materials sourced and in-place and labor booked well ahead of the scheduled groundbreaking. That momentum and planning is difficult to reverse at the last minute.
“Additionally, most of the stay-at-home orders and construction moratoriums were not instituted until the last week of the month and into April,” he continues. “Therefore, April construction starts are likely to be a very different story with states like New York, New Jersey and Pennsylvania among others banning construction activity. April’s starts data will be the first true indication of how the crisis will impact the construction industry.”
Nonresidential building construction decreased 9% in March. Commercial construction starts fell 5% in March with losses in three of the five commercial subcategories, and institutional starts fell 12%.
Residential building construction fell 11% in March. Single-family housing dropped 14%, and multifamily construction fell 3%.
Nonbuilding construction increased 14% in March because of the start of several large electric power facilities.
For the 12 months ending in March, nonresidential building was down less than one percentage point compared with the 12 months ending March 2019. Residential building increased 3%, and nonbuilding construction rose 5%.
