Dodge Analytics: Nonresidential Construction Starts Increased 6 Percent from May to June

BEDFORD, MASS. — Total nonresidential construction starts across the United States increased by 6 percent from May to June, registering an aggregate value of about $641 billion, according to a new report from Massachusetts-based Dodge Data & Analytics. June marks the second consecutive month of elevated commercial construction activity; however, the volume of residential starts decreased by 6 percent from May to June. According to the report, total nonresidential construction starts were down 14 percent for the first six months of the year relative to that period in 2019, despite construction generally being considered an essential business during the COVID-19 shutdown. Richard Branch, Dodge’s chief economist, said that the uptick in construction activity in May was tied to a handful of very large projects, but June’s gains appeared to be “much more organic in nature.” Branch added that he expected the volume and monetary value of construction starts to grow in the coming months contingent upon the degrees of severity of new COVID-19 cases surges in states like Florida, Texas and California.