Issue link: https://read.dmtmag.com/i/588129
40 • NOVEMBER 2015 • WORLD FENCE NEWS NEW YORK – New construction starts in August dropped 11% to a sea- sonally adjusted annual rate of $554.5 billion, according to Dodge Data & Analytics. Declines were reported for each of construction's three main sectors – nonresidential building and housing pulled back from their improved July pace, while nonbuilding construction continued to recede from the height- ened performance witnessed earlier in 2015. During the fi rst eight months of 2015, total construction starts on an unadjusted basis were $446.1 billion, up 15% from the same period a year ago. If the volatile electric utility and gas plant category is excluded, total construction starts during the fi rst eight months of 2015 would be up a more moderate 7% relative to last year. The August statistics lowered the Dodge Index to 117 (2000 =100), down from the 133 reported for both June and July. "While August construction starts were notably subdued com- pared to recent months, it's useful to keep in mind that construction starts on a monthly basis will often show an up-and-down pattern, and the year- to-date statistics depict an expansion that's still proceeding," stated Robert A. Murray, chief economist for Dodge Data & Analytics. "For nonresidential building, the early months of 2015 did show some deceleration for the commercial cate- gories, consistent with the slower pace of economic growth in the fi rst quar- ter, and manufacturing plant construc- tion is now retreating after the excep- tional amount of energy-related plant investment in 2014. "At the same time, market fun- damentals for commercial building (namely rents and occupancies) are still positive, and commercial build- ing projects at the planning stage have recently increased," Murray said. "This suggests that the pace of com- mercial building starts, while lack- luster in August, should soon pick up. For residential building, the August decline was due to a slower pace for multifamily housing after a particu- larly strong July, and the upward trend for this sector remains intact. "For nonbuilding construc- tion, highway and bridge starts have slipped from the elevated activity re- ported earlier in 2015, and at midyear there was uncertainty related to the depleted Highway Trust Fund. "At the end of July, Congress ap- proved $8 billion to shore up the High- way Trust Fund, although there's still some uncertainty as to when Congress will be able to pass a new multiyear federal transportation bill," he said. Nonresidential building in August dropped 16% to $160.7 billion (annual rate). The commercial building cate- gories as a group were considerably weaker for the month, sliding 24%. Hotel construction in August plunged 35%, pausing from the strength of recent months, although August did include the start of a $122 million hotel in New York, N.Y. Offi ce construction, falling 34%, The Dodge Report August construction starts fall 11 percent continued on page 42 Join Us In Nashville For Fence Industry Week And The Trade Show! Visit The World Fence News Crew In Booth 524! Hope To See You There!