Article source: ConstructConnect
ConstructConnect announced today that November’s volume of construction starts, excluding residential work, was $27.4 billion, the lowest level since February ($26.6 billion) of this year.
On a month-to-month basis, November’s nonresidential starts fell by nearly one-quarter (-22.6%). The usual seasonal pullback, due to harsher winter-onset weather, is in a range of -2% to -7%. November 2018 compared with November 2017 was -9.8%. November 2018 relative to the previous five-year average for November, − i.e., from 2013 through 2017, − was +0.9%.
Year-to-date starts in 2018 compared with January-to-November of 2017 have been -4.0%. There is only one month still to go, December, before 2018’s annual results will be tabulated.
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.
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‘Nonresidential building’ plus ‘engineering/civil’ work accounts for a larger share of total construction than residential activity. The former’s combined proportion of total put-in-place construction in the Census Bureau’s October report was 59%; the latter’s was 41%.
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., November 2018) is one month ahead of the reporting period for the investment series (i.e., October 2018.)
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