By Sebastian ObandoDive Brief:
- Total construction starts declined 19% in September to a seasonally adjusted annual rate of $1.02 trillion, according to a Dodge Data & Analytics report.
- The September decline follows August’s 9% drop in total construction starts, marking two consecutive months of decline following July’s 48% surge. Nonresidential building starts dropped 23%, residential starts fell 11% and nonbuilding starts, such as roads, bridges and power plants, dipped 25%.
- Nevertheless, the drop in starts should not be considered a sign of a pending pullback in the construction industry, said Richard Branch, Dodge chief economist, in the report.