December Construction Starts up 12 percent, 2017 Total Up 3 Percent to $745.9 Billion
New construction starts in December climbed 12 percent to a seasonally adjusted annual rate of $733.3 billion, bouncing back following November’s 12 percent decline, according to Dodge Data & Analytics.
December’s gain for total construction reflected varied improvement by each of the three main construction sectors. Nonbuilding construction (public works and electric utilities/gas plants) jumped 43 percent, lifted by the start of the $2.3 billion I-66 Corridor Improvements Project in northern Virginia. Nonresidential building rose 10 percent, aided by the start of two large data center projects, while residential building edged up 1 percent. For all of 2017, total construction starts grew 3 percent to $745.9 billion, which followed the 6 percent increase reported for 2016. The full year 2017 gain was dampened by a 35 percent downturn for the electric utility/gas plant category. If electric utilities and gas plants are excluded, total construction starts for 2017 would be 5 percent higher than the corresponding amount for 2016.
The December statistics produced a reading of 155 for the Dodge Index (2000=100), up from November’s 138. For the full year 2017, the Dodge Index averaged 158.