Construction Starts Up 6 Percent in June
New construction starts in June advanced 6 percent to a seasonally adjusted annual rate of $549.7 billion, the highest level so far in 2014, according to a release from McGraw Hill Construction, a division of McGraw Hill Financial. During the first six months of 2014, total construction starts on an unadjusted basis were $254.1 billion, up 1 percent from the same period a year ago.
The improved starts can be attributed in large part to performance in the nonresidential building sector, which saw starts increase 12 percent in June to $214.9 billion, following a 4 percent decline in May.
“The first half of 2014 revealed a mixed performance by project type,” Robert A. Murray, chief economist for McGraw Hill Construction, said in the release. “Single family housing stands out as the biggest surprise on the negative side, as its upward trend present for much of 2012 and 2013 has stalled for now. … On the positive side, multifamily housing is still proceeding at a healthy clip, and commercial building continues to move hesitantly upward, with office construction this year providing most of the support.”