The value of new construction starts fell 13% in January to a seasonally adjusted annual rate of $485 billion, according to McGraw Hill Construction, a division of McGraw Hill Financial. The downturn followed a healthy performance in December, which was the third highest month for total construction starts during 2013.
January’s retreat encompassed all three main construction sectors, with moderate declines reported for nonresidential building and housing, as well as a more substantial loss of momentum for nonbuilding construction (public works and electric utilities) after a particularly robust December. On an unadjusted basis, total construction starts in January came in at $34.1 billion, down 5% from the same month a year ago.