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Drop in First-Half Nonresidential Starts09-17-15 | News

Drop in First-Half Nonresidential Starts
Northeast, West Regions Lead Decline

Nonresidential building starts were down 7 percent through the first six months of 2015, compared to the January-to-June period of the previous year.

The value of nonresidential construction starts in the first half of 2015 declined nearly 7 percent, compared to the same time frame of a year ago, Construction Market Data Group reports.

In dollar amounts, it dropped to $90.7 billion from January to June 2015, from $97.4 billion in the same time frame of the previous year.

Nonresidential construction starts by region:

Midwest "?u remained relatively unchanged at $18.8 billion in the first halves of both 2015 and 2014. The difference is a minus 0.4 percent.

South Dakota was up 219.5 percent, while Minnesota improved 105.3 percent. Indiana was down 42.8 percent, and Nebraska dropped 44.1 percent.

Northeast "?u declined 16.5 percent to $15.2 billion in the top half of 2015. There were $18.2 billion worth of construction starts in the first half of the previous year.

Maine was down 61.4 percent, and Rhode Island declined 56.2 percent. New Hampshire was up 87.2 percent, and Vermont climbed 31.9 percent.

South "?u increased 2.2 percent to $37.0 billion, compared to $36.2 billion in the first six months of 2014. Louisiana jumped 433.2 percent, and Tennessee improved 38.3 percent. The District of Columbia dropped 86.5 percent, while Alabama declined 76.2 percent.

West "?u dropped 18.3 percent to $19.6 billion, compared to $24.0 billion in the first six months of the previous year.

Nevada jumped 241.3 percent, and Montana increased 110.6 percent. Arizona declined 37.8 percent, and Washington dropped 37.0 percent.

Even though nonresidential construction starts in general declined, heavy engineering and civil construction starts increased by slightly more than 10 percent to
nearly $57 billion in the top half of 2015. It stood at $51.1 billion in the first six months of the previous year. Heavy engineering and civil construction starts by region:

Midwest "?u increased 25.5 percent to $15.9 billion, compared to $12.6 billion in the first half of 2014.

Northeast "?u climbed 18.5 percent to $10.1 billion. It stood at $8.6 billion in the top half of the previous year.

South "?u improved 3.8 percent to $19.5 billion, compared to $18.8 billion in the first half of 2014.

West "?u declined 2.3 percent to $11.2 billion, from $11.5 billion in the previous year.

Website link: https://tinyurl.com/p5loty8

Private sector nonresidential spending amounted to $407.0 billion in July, or 1.5 percent above June, and an 18.2 percent hike compared to July 2014, according to Census Bureau data.

The big monthly gainers were: religious facilities, up 5.9 percent; manufacturing, 4.7 percent; transportation and power, each at 2.1 percent; and amusement and recreation, 1.7 percent.

Only two segments in the private sector nonresidential segment posted losses from the June-to-July period. Commercial was down 1.0 percent, and lodging declined 1.1 percent.

Top year-to-year gainers were: manufacturing, 73.1 percent; amusement and recreation, 60.0 percent; lodging, 41.2 percent; offices, 29.4 percent; and health care, 13.3 percent. Commercial showed a gain of 5.0 percent.

Power was the only private sector nonresidential sector with a year-to-year loss. It dropped 12.6 percent. Website link: https://tinyurl.com/6norlgn