Following an “exceptionally strong” June, the dollar value of nonresidential construction starts fell 19.5 percent during July, according to data gathered by Reed Construction Data.
“A surge of project authorizations at the beginning of summer has been followed by a significant retreat,” says Reed chief economist Alex Carrick. “The latest month was a return to equilibrium as established over the past several years.”
The value of nonresidential starts fell from $32.4 billion in June to $26.1 billion in July, according to Carrick. Despite the fall, Carrick says July’s volume remains the second-highest volume of the year and is 1.4 percent above July 2013’s mark.
So far this year, Carrick says the value of nonresidential construction starts through July is $164.853 billion, an improvement of 4.8 percent over the same period in 2013. It should be noted, Reed states its figures in “current” dollars which means they’re not adjusted for inflation.
Carrick says the numbers point to an economy “on a growth path that is not being mirrored in construction starts.”
“The level of pent-up demand for construction continues to accumulate,” Carrick says. “Non-residential building starts are no higher now than they were eight to 10 years ago. Nor are infrastructure needs being met for a population that is growing at an annual pace of 0.7 percent to 0.8 percent.”
You can view Reed’s full data set covering the value of starts for each segment of nonresidential construction below.
