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U.S. Industry Snapshot - Nonresidential Construction Starts Land Softly in June after Soaring in May

Alex Carrick
U.S. Industry Snapshot - Nonresidential Construction Starts Land Softly in June after Soaring in May

ConstructConnect announced today that the latest month’s volume of construction starts, excluding residential work, was $44.9 billion. Click here to read the complete June 2019 Industry Snapshot article, Nonresidential Construction Starts Land Softly in June after Soaring in May – below is a short excerpt.

Nonresidential Construction Starts Land Softly in June after Soaring in May

The month-to-month percentage change versus May was -18.3%. The large drop, however, was mainly due to May having so many mega-sized project initiations. May’s Top 10 project starts list totaled $20.7 billion, double the figure of $10.3 billion for June’s biggest projects rollcall (see Top 10 Project Starts in the U.S. – June 2019).

The latest month’s results benefit from historical perspective. June 2019’s nonresidential starts relative to the average for June in the prior five years, from 2013 to 2017, were +8.0%. Year-to-date total nonresidential starts in 2019 have been -6.4% compared with the first half of 2018.

 
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Construction Overview

The U.S. construction sector managed a nice increase in employment in June, +21,000 jobs. Construction’s monthly average climb in jobs through the first six months of this year, however, has pulled back to +18,000 from +32,000 in the first half of last year. Still, with respect to year-over-year hiring, construction remains the leader among major U.S. industrial sub-sectors, at +3.1%. Nipping at construction’s heels are ‘transportation and warehousing’, +2.9%, and ‘health care and social assistance’, +2.7%. The all-jobs rate of increase has been +1.5% y/y.

Construction’s NSA unemployment rate in June was 4.0%, up from 3.2% in May, but an improvement on June 2018’s 4.7%. the national jobless rate currently sits at 3.8% NSA.

June’s year-over-year employment changes in other pockets of the economy with close ties to construction were: ‘machinery and equipment rental’, +10.4%; ‘oil and gas extraction’, +8.5%; ‘architectural and engineering services’, +3.1%; ‘real estate firms’, +3.0%; ‘cement and concrete product manufacturing’, -0.2%; and ‘building material and supplies dealers’, -0.6%.

Click here to download the Construction Industry Snapshot Package – June 2019 PDF.

Click here for the Top 10 Project Starts in the U.S. – June 2019.

Click here for the Nonresidential Construction Starts Trend Graphs – June 2019.

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