Article source: ConstructConnect
ConstructConnect announced today that December’s level of U.S. construction starts, excluding residential activity, was $24.0 billion, an increase of 3.4% versus the dollar volume in the period before. The gain, small though it may have been, was welcome nonetheless since November-to-December’s long-term average change, on account of inhibiting winter weather, has been -5.0%.
December of 2016, however, compared with December of 2015 was -5.6%. But it’s encouraging that total nonresidential starts for full year 2016 stayed ahead of full-year 2015 by +6.8%.
The starts figures throughout this report are not seasonally adjusted (NSA). Nor are they altered for inflation. They are expressed in what are termed ‘current’ as opposed to ‘constant’ dollars.
‘Nonresidential building’ plus ‘engineering/civil’ work accounts for a considerably larger share of total construction than residential activity. The former’s combined proportion of total put-in-place construction in the Census Bureau’s November report was 61%; the latter’s was 39%.
ConstructConnect’s construction starts are leading indicators for the Census Bureau’s capital investment or put-in-place series. Also, the reporting period for starts (i.e., December 2016) is one month ahead of the reporting period for the investment series (i.e., November 2016.)