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News & Press: Extrusion Applications News

New construction starts dip 9%, including 22% drop in nonresidential starts in July

Tuesday, August 28, 2018  
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New construction starts in July fell 9%, including a 22% drop for nonresidential building, according to Dodge Data & Analytics. The latest month’s decline followed strong gains for total construction starts during the previous two months, with May up 14 percent and June up 11 percent. Nonresidential building dropped 22 percent from June’s numbers. June’s figures had been lifted by the start of two massive manufacturing plants and two large office buildings. While July did see several large manufacturing and office projects break ground, they were not the same magnitude as what took place in June. The other two major sectors in July held close to their June amounts, with residential building up 2 percent and non-building construction unchanged.

The current year has seen the mounting headwinds of higher material prices and higher interest rates, but it is also seen the tailwinds of healthy economic growth, some easing of bank lending standards, and the increased funding for public works programs coming from the federal appropriations legislation passed in March. Amidst the monthly ups-and-downs, the broad trend for construction starts during 2018 remains one of modest expansion, the organization reports.