According to a recent report by Dodge Data & Analytics, the value of US construction starts in March has increased by 5% from February to an annual rate of $743.7 billion.
Dodge chief economist Robert Murray stated that the first quarter of this year has seen strong construction activity, indicating that the industry is still undergoing an expansion. He said:
“While the construction start statistics will frequently show an up-and-down pattern, whether month-to-month or quarter-to-quarter, the improved activity in this year’s first quarter provides evidence that the construction expansion is still proceeding.”
Generally, the value of March construction starts was boosted by high-profile projects, including the Pensacola Bay Bridge in Florida, LG headquarters in Englewood Cliffs, New Jersey, and the Midfield Satellite Concourse at the Los Angeles International Airport.
Construction activity is expected to expand even more in the next few years if the $1 trillion infrastructure spending program by the new administration comes online. One of the potential signs that such an uptrend will occur is the Department Transportation reshuffling some of its top positions to better support a large-scale infrastructure agenda.
Generally, the Dodge Momentum Index for March marked a consecutive increase in six months, which was driven by a substantial growth in the non-residential construction sector. In addition, the number of institutional and commercial projects in the planning stages has also doubled in the said month.