New construction starts in May climbed 10% from April, according to Dodge Data & Analytics.
The increase continues the double-digit swings that were reported during the previous two months, when a 16% hike for total construction starts in March was followed by a 15% decline in April. Each of the three main construction sectors contributed to May’s 10% gain.
Non-building construction rebounded 32% after depressed activity in April, lifted by an especially strong amount of new power plant starts and an $800 million light rail project in the Minneapolis area. Nonresidential building improved 7%, supported by groundbreaking for two very large manufacturing plant projects. Residential building edged up 2%, with modest gains for both single family housing and multifamily housing.
Through the first five months of 2019, total construction starts on an unadjusted basis were $295.0 billion, down 9% from the same period a year ago. On a twelve-month moving total basis, total construction starts for the twelve months ending May 2019 were 2% below the amount reported for the twelve months ending May 2018.
The May statistics raised the Dodge Index to 160 (2000=100), up from April’s 145. May’s reading was still less than the 172 reported in March, as well as the full year 2018 average for the Dodge Index at 171.
