Construction Starts in the US Jumped in January with Huge Projects Breaking Ground

construction starts
Image Source: Eli Christman, CC BY 2.0

According to a recent report by Dodge Data & Analytics, new construction starts in the US have climbed 12% in January this year to a seasonally adjusted annual rate of $690.2 billion.

After losing momentum during the last quarter of 2016, non-residential building activity increased in the said month. Much of the development came from the construction of the LaGuardia Airport Central Terminal Building in New York, as well as groundbreaking of other large airport terminals in the country.

As for the residential building activity, it also went up as the result of a slight gain for single-family housing.

Commenting on the trend, chief economist for Dodge Data & Analytics, Robert A. Murray, said:

“The 12% gain for total construction starts in January gets 2017 off to a healthy beginning, following the declines reported toward the end of 2016.

“What’s noteworthy about January’s rebound is that the institutional side of the nonresidential building market, led by airport terminal work, has assumed a more substantial role in keeping the expansion going.”

The statistics in January raised the Dodge Index to 146 from 130 in December, though it did not surpass 2016’s Dodge Index peak of 156 which happened last August.

However, if the recent statistics does not include gas plants, manufacturing facilities, and electric utilities, total construction starts in the said month would be up 10% from the corresponding number of last year.