According to Dodge Data and Analytics, total construction starts increased 6% in June to a seasonally adjusted annual rate of $641.4 billion. This marks the second consecutive monthly gain in construction starts following the COVID-19 induced declines in March and April. In June nonresidential building starts gained 6% and starts in the nonbuilding sector moved 27% higher. Residential starts, by contrast, fell 6% during the month.
Through the first six months of the year, starts were down 14% from the same period in 2019. Nonresidential starts fell 22%, nonbuilding starts were down 14%, and residential starts dropped 5%. For the 12 months ending in June 2020, total construction starts were down 2% from the previous 12 months. Nonresidential building starts were down 7% and residential building starts were flat, but nonbuilding starts were 3% higher in the past 12 months. In June, the Dodge Index moved 6% higher to 136 (2000=100) from the 128 reading in May. Compared to a year earlier, the Dodge Index was down 28%
Nonresidential building starts moved 6% higher in June to a seasonally adjusted annual rate of $198.5 billion. Institutional building starts rose 15% during the month, while commercial building starts moved 4% higher. Manufacturing starts, however, fell 32% following the start of a $950 million steel plant in May.
On a year-to-date basis, total nonresidential building starts were 22% lower than the first six months of 2019. Institutional building starts were down 15%, while commercial starts were 27% lower. Manufacturing starts dropped 38% on a year-to-date basis. On a 12-month total basis, total nonresidential building starts were 7% lower than the 12 months ending June 2019. Commercial starts have dropped 8%, while institutional starts were down 9%. Manufacturing starts are 9% higher on a rolling 12-month basis.
Residential building starts fell 6% in June to a seasonally adjusted annual rate of $251.8 billion. Both multifamily and single family starts were lower during the month, with single family falling 7% and multifamily dropping 4%.