ConDig (26-Feb-19).  US construction starts rebounded 2% in January after two months of decline as the residential and nonresidential sectors both posted modest increases, according to latest figures from Dodge Data & Analytics.

The increase helped push starts up to a seasonally adjusted annual rate of $722.5 billion compared with $708.9 billion the month prior.

The breaking of ground in the residential building sector climbed 4%, lifted by a rebound for multifamily housing, while nonresidential building edged up 1% amid a stronger pace for commercial buildings. 

Nonbuilding construction also edged up 1%, helped by the start of a $1 billion natural gas pipeline in Oklahoma and several large electric utility projects. 

But on an unadjusted basis, total construction starts for the year-to-date in January were $51.5 billion, down 12% from the same month a year ago when starts were $58.5 billion.

“January’s slight increase suggests that construction starts are beginning to stabilize after the diminished activity reported at the end of last year,” said Robert A. Murray, chief economist for Dodge Data & Analytics. 

“This is consistent with the belief that total construction starts for 2019 will be able to stay close to last year’s volume. It’s true that the rate of growth for total construction starts has subsided from the 7% annual gain reported back in 2017, but it’s still too early to say that construction activity has made the transition from deceleration to decline.”