{"id":1639,"date":"2019-09-23T10:46:35","date_gmt":"2019-09-23T14:46:35","guid":{"rendered":"https:\/\/www.construction.com\/newsroom_details_pag\/august-construction-starts-decrease-6-percent-september-2019\/"},"modified":"2025-10-15T10:03:52","modified_gmt":"2025-10-15T14:03:52","slug":"august-construction-starts-decrease-6-percent-september-2019","status":"publish","type":"post","link":"https:\/\/www.construction.com\/total-construction-starts\/august-construction-starts-decrease-6-percent-september-2019\/","title":{"rendered":"August Construction Starts Decrease 6 Percent"},"content":{"rendered":"<p><em><strong>August Construction Starts Decrease 6 Percent<\/strong><\/em><\/p>\n<p><em>Drop in Public Works following a strong July breaks the three-month string of Total Construction Gains<\/em><\/p>\n<p>NEW YORK&#8211;(<a href=\"https:\/\/www.businesswire.com\/\">BUSINESS WIRE<\/a>)&#8211;New construction starts dropped 6% over the month in August to a seasonally adjusted annual rate of $807.1 billion, according to <a href=\"https:\/\/www.construction.com\/\">Dodge Data &amp; Analytics<\/a>. August\u2019s decline breaks a string of three consecutive month-to-month gains. By major sector, nonbuilding construction fell 15% in August, reversing the large increases made in the previous month when several notable projects started. The declines in residential and nonresidential building were milder \u2013 falling 1% and 3% respectively in August.<\/p>\n<p>The August statistics lowered the Dodge Index to 171 (2000=100) compared to 182 in July, marking the lowest reading for the Index since May. Despite the month\u2019s decline, the Index remains above its 2019 average of 167.<\/p>\n<p>Year-to-date through eight months, total construction starts were 5% lower than the same period a year ago due to declines in residential and nonresidential buildings. Nonbuilding construction activity was 3% higher through the first eight months of the year due to gains in electric utilities\/gas plants.<\/p>\n<p>\u201cThe August decline was expected after July\u2019s robust level of starts,\u201d stated Richard Branch, Chief Economist for Dodge Data &amp; Analytics. \u201cFurthermore, the year-to-date activity continued to suggest that this year\u2019s levels are easing back from what was seen in 2018 \u2013 essentially mirroring the slowdown in overall economic growth.\u201d<\/p>\n<p><strong>Nonbuilding construction<\/strong> starts reached $217.4 billion (at a seasonally adjusted annual rate) in August, a 15% decline from the previous month. Environmental public works (drinking water, sewers, hazardous waste, and other water resource projects) fell 43% from July to August, while miscellaneous nonbuilding fell 32%. Both types of construction had shown remarkable strength in July as work on several large projects got underway. Offsetting these declines was a 10% increase in street and bridge projects. The electric utility\/gas plant category also gained 9% over the month.<\/p>\n<p>The largest nonbuilding construction project to start work in August was the $2 billion Permian Highway Pipeline Project in Texas. Also breaking ground during the month was the $840 million Lynwood Link Extension rail line in Washington and the $625 million Palen Solar Farm in Desert Center CA.<\/p>\n<p>Through the first eight months of 2019, nonbuilding construction was 3% higher than 2018. However, environmental public works and electric utility\/gas plants were the only categories within nonbuilding construction registering a positive year-to-date gain.<\/p>\n<p><strong>Nonresidential building<\/strong> starts dropped 3% from July to August, to $283.9 billion (at a seasonally adjusted annual rate). August\u2019s decline was the direct result of a 66% drop in manufacturing starts, which had soared in July when the $1.0 billion Foxconn manufacturing complex broke ground in Mount Pleasant WI. Commercial construction starts rose 7% in August to $135.2 billion (annual), the result of increases in offices and warehouses. Institutional starts rose 2% in August to $138.2 billion (annual) due to increases in health and education facilities.<\/p>\n<p>Several notable nonresidential projects got underway in August, including the $450 million Joan Paul Rubschlager University Cancer Care Center in Chicago IL and two Facebook data centers \u2014 a $400 million facility in Altoona IA and a $350 million building in New Albany OH.<\/p>\n<p>Through the first eight months of 2019, nonresidential building starts totaled $188.2 billion, a decline of 7% over the same time frame of 2018. Commercial starts were 3% higher year-to-date, fueled by gains in offices, warehouses, and parking structures. Starts for stores and hotels were lower through the first eight months of this year. Institutional construction was 5% lower year-to-date at $92 billion with declines evident across all institutional categories. Manufacturing construction starts were 46% lower year-to-date.<\/p>\n<p><strong>Residential building<\/strong> fell 1% during the month to $305.8 billion. Single family construction was 3% lower, overwhelming a 3% gain in multifamily starts.<\/p>\n<p>The month-to-month growth in multifamily housing was aided by the start of a $600 million apartment complex on West 29th Street in New York, NY. Also breaking ground during the month was the $515 million Brookfield residential tower in Los Angeles, CA and the $223 million Sendero Verde mixed-use project in New York, NY.<\/p>\n<p>On a year-to-date basis, total residential construction was 8% lower than during the first eight months of 2018 at $211.3 billion. Single family construction was 6% down, while multifamily declined 13% through eight months.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/www.construction.com\/wp-content\/uploads\/2023\/01\/cs-aug-2019-chart.jpg\" alt=\"Chart showing construction starts data for August 2019, including residential, nonresidential, and nonbuilding segments.\" \/><br \/>\n<img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/www.construction.com\/wp-content\/uploads\/2023\/01\/cs-aug-2019-summary.jpg\" alt=\"Summary table of US construction starts for August 2019.\" \/><\/p>\n<p style=\"text-align: center;\">###<\/p>\n<p><strong>About Dodge Construction Network<\/strong> Dodge Construction Network leverages an unmatched offering of data, analytics, and industry-spanning relationships to generate the most powerful source of information, knowledge, insights, and connections in the commercial construction industry. The company powers four longstanding and trusted industry solutions\u2014Dodge Data &amp; Analytics, The Blue Book Network, Sweets, and IMS\u2014to connect the dots across the entire commercial construction ecosystem. Together, these solutions provide clear and actionable opportunities for both small teams and enterprise firms. Purpose-built to streamline the complicated, Dodge Construction Network ensures that construction professionals have the information they need to build successful businesses and thriving communities. With over a century of industry experience, Dodge Construction Network is the catalyst for modern commercial construction. To learn more, visit <a href=\"http:\/\/construction.com\/\">construction.com<\/a><\/p>\n<p><strong>Media Contact :<\/strong><br \/>\nCailey Henderson | 104 West Partners | <a href=\"mailto:cailey.henderson@104west.com\">cailey.henderson@104west.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>August Construction Starts Decrease 6 Percent Drop in Public Works following a strong July breaks the three-month string of Total Construction Gains NEW YORK&#8211;(BUSINESS WIRE)&#8211;New construction starts dropped 6% over the month in August to a seasonally adjusted annual rate of $807.1 billion, according to Dodge Data &amp; Analytics. August\u2019s decline breaks a string of&#8230;<\/p>\n","protected":false},"author":41,"featured_media":23698,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_uag_custom_page_level_css":"","footnotes":""},"categories":[73],"tags":[],"class_list":["post-1639","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-total-construction-starts"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>August Construction Starts Decrease 6 Percent | Dodge Construction Network<\/title>\n<meta name=\"description\" content=\"August construction starts decreased 6% in September 2019. 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