New construction starts in June dropped 15% from the previous month, according to Dodge Data & Analytics.
Despite the monthly decline, construction starts through the first six months of the year are 23% above 2014’s level. The June monthly decline followed a strong May, which benefited from a $9-billion liquefied natural gas terminal that entered the planning stage.
Nonbuilding construction in June fell 38%, while residential building in June posted a slight 2% gain, helped by strength for multifamily housing.
During the first half of 2015, total construction starts on an unadjusted basis were $336 billion. “The 23% year-to-date increase overstates the strength of the expansion, and the underlying rate of growth is likely around 10%,” says Robert A. Murray, chief economist for DD&A.