The news from the construction market in 1Q 2015 is mixed, judging from a recent Dodge Data & Analytics press release. New construction starts in March retreated 13% from the previous month to a seasonally adjusted annual rate of $633.3 billion, The decline followed strong construction gains in January (up 9%) and February (up 17%), when the total construction market was lifted by the start of several massive projects valued each in excess of $1 billion.
By major sector, March showed diminished activity for nonresidential building and nonbuilding construction, while residential building held steady. For the first three months of 2015, total construction starts on an unadjusted basis were up 28% from the same period a year ago.
“The presence of unusually large projects will affect the month-to-month pattern for construction starts, and that’s certainly been true during the early months of 2015,” Robert Murray, chief economist for Dodge Data & Analytics, said in the press release.
“While nonresidential building lost some momentum in March, the broad pattern over recent months reveals more growth for commercial building combined with strengthening for several institutional structure types, most notably school construction. And, while residential building still awaits renewed upward progress by single-family housing, the multi-family side of the housing market continues to strengthen, as low vacancies and rising rents in numerous markets provide the justification for more construction.”