Dodge Data’s starts fell another 3% in July as the upward march of materials prices and ongoing pandemic risks continue to weigh on construction activity. Although commercial and multifamily construction starts across major metro areas have seen ongoing gains throughout the first half of 2021, and civil contractors remain optimistic about work volume going forward, the upward march of materials prices and ongoing pandemic risks continue to weigh heavily on U.S. construction starts. Total starts fell another 3% in July on top of a 7% decline the prior month to a seasonally adjusted annual rate of $854.8 billion. Dodge Data & Analytics reports that despite a few bright spots, all three major industry sectors shifted downward, pulling starts to a five-month low. One such bright spot has been the decline in recent weeks in lumber and copper prices, both of which have had negative impacts on housing activity. “However, steel, plastic and other construction-related products are continuing their ascent,” said Richard Branch, chief economist for Dodge Data & Analytics. “These increases will continue to impact construction starts over the coming months, somewhat muting the impact of stronger economic activity. READ FULL ARTICLE>>
