NEW YORK CITY — At a seasonally adjusted annual rate of $563.3 billion, new construction starts in November fell 5 percent from the previous month, according to Dodge Data & Analytics. The decline represented a partial pullback after the 13 percent increase reported for total construction in October, as nonresidential building lost some momentum following its improved October pace.
Decreased activity was also reported for housing in November, while the nonbuilding construction sector, consisting of public works, electric utilities and gas plants, held steady. During the first eleven months of 2015, total construction starts on an unadjusted basis were $597.9 billion, up 8 percent from the same period a year ago.
The November statistics lowered the Dodge Index to 119, compared to 125 in October. November was still above the lackluster activity reported for August and September, when the Dodge Index averaged 114.
“The pattern of construction starts on a month-to-month basis is rarely smooth, and October and November do show improvement after the subdued activity in late summer,” says Robert Murray, chief economist for Dodge Data & Analytics. “The construction expansion, while often hesitant, should be able to continue in coming months as the result of several factors.”
Nonresidential building in November dropped 13 percent to $175.4 billion following its 33 percent rebound in October. The commercial building categories as a group have been the cause of much of the volatility over the past two months, according to the firm, sliding 29 percent in November after soaring 53 percent in October.
Office construction plunged 43 percent in November after being lifted in October by the start of two data centers valued at $570 million and $300 million, respectively, and several office buildings. The major office projects that were reported as November starts were generally smaller in scale than what took place in October, and included such projects as a $155 million insurance claims service center in Plano, Texas, and a $70 million corporate headquarters in Rapid City, S.D.
The garage and service station category in November decreased 39 percent after soaring 119 percent in October with the start of two consolidated rental car facilities at Chicago’s O’Hare International Airport and the San Antonio International Airport.
Retail construction in November fell 30 percent, although it did include groundbreaking for a $100 million outlet mall in Daytona Beach, Fla. Warehouse construction retreated 13 percent. Hotel construction in November stayed even with its October pace, helped by the start of the $193 million hotel portion of the $400 million Eighth and Howell convention center hotel complex in Seattle.
The manufacturing plant category in November was able to show improvement following its depressed October activity, rising 38 percent with the upward push coming from two automotive-related projects — a $307 million expansion to a General Motors plant in Arlington, Texas and a $250 million expansion to a Mercedes-Benz plant in Vance, Ala.
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— Haisten Willis