Driven by manufacturing, new construction grows
New construction starts in July across the United States climbed 6 percent compared over last year, to a seasonally adjusted annual rate of $588.8 billion, according to McGraw Hill Construction, a division of McGraw Hill Financial.
According to the company, nonresidential building continued to advance, supported by what it said was “another robust month for manufacturing plant projects as well as improvement for commercial building.” At the same time, it reported that residential building was unchanged from its pace in June.
The report showed that non-residential building, which includes manufacturing, hospitality, and health care among its categories, increased 7 percent to $229 billion (annual rate). Of that, the manufacturing plant category jumped 44 percent, reflecting the start of more chemical and energy-related facilities nationwide, the survey said.
At a $223.4 billion annual rate in July, residential construction held even with its June pace, according to the survey. Meanwhile, construction of single-family homes slipped 3 percent both nationwide and in the Northeast, the survey said.
Additionally, non-building construction, which includes public works and utilities, climbed 14 percent over July 2013 to an annual rate of $136.4 billion, McGraw Hill said.
Through the first seven months of 2014, total construction starts were at $311.6 billion (not seasonally adjusted), a 4 percent gain over last year.
By geography, total construction starts in the first seven months of 2014 revealed gains in only two regions – the South Central, up 18 percent; and the Northeast, (5 percent). The West was unchanged from the same period a year ago, while the Midwest (down 1 percent) and South Atlantic (3 percent) posted declined.
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