NEW YORK –August 21, 2014 – New construction starts in July climbed 6% to a seasonally adjusted annual rate of $588.8 billion, according to McGraw Hill Construction, a division of McGraw Hill Financial. Nonresidential building continued to advance, supported by yet another robust month for manufacturing plant projects as well as improvement for commercial building. The nonbuilding construction sector (public works and electric utilities) also advanced, helped by the start of a very large mass transit rail project. At the same time, residential building was unchanged from its pace in June. For the first seven months of 2014, total construction starts on an unadjusted basis were reported at $311.6 billion, a 4% gain compared to the same period a year ago.
The July statistics raised the Dodge Index to 125 (2000=100), up from a revised 118 for June, and marking the highest level for the Dodge Index so far in 2014. “The construction expansion this year is getting more of a contribution from nonresidential building,” stated Robert A. Murray, chief economist and vice president for McGraw Hill Construction. “Manufacturing plant construction is seeing the start of numerous chemical and energy-related projects, consistent with the nation’s growing energy sector. Commercial building is maintaining its upward momentum from low levels, while institutional building with its up-and-down pattern appears to be stabilizing after a lengthy decline.