Thursday, June 26, 2014

Nonresidential Construction Starts Rebound in May



Reed Construction Data announced today the value of May construction starts, excluding residential contracts, increased 5.9% to $23.9 billion after falling 4.7% in April.

Starts were up 10.8% from May 2013. Year-to-date starts, which totaled $106.1 billion, were 2.6% higher than the same period in 2013.

Since the starts data are not seasonally adjusted (NSA), caution should be used in analyzing monthly movements. Year-over-year comparisons are often used, as they remove much of the seasonal effects.

The May starts data suggest that construction activity is recovering from the unusually bad weather that prevailed over much of the country for the first part of the year, even as spring tornados and flooding wreaked their havoc around the nation.

The value of construction starts1 each month is summarized from the Reed database of all active construction projects in the U.S., excluding residential construction. Missing project values are estimated with RSMeans building cost models.

Commercial starts managed a small gain in May, up 4.3%, after being pummeled in April, down almost a third (-32.2%).Year-to-date commercial starts were down 15.8% from the same period last year.

Red the entire story at Reed Construction Data by going here…

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