Unlike this week’s U.S. Census Bureau’s Housing Starts and Permits report for July, which indicated a strong rebound in residential building, the three private measures of recent and expected nonresidential construction activity were all in the negative. According to the Dodge Data & Analytics (DD&A) total construction starts fell -7% from June to July, at a seasonally adjusted rate. Richard Branch, DD&A chief economist said, “The decline was due to a significant pullback in the nonbuilding segment, which fell 31% from June to July. Nonresidential building starts rose 3% while starts in residential building increased by 2%. Year-to-date through seven months, starts declined -15% from the same period in 2019. Nonresidential starts plummeted -25%, nonbuilding starts dropped -20%, and residential starts slipped -4%. Branch however cautioned “While one month doesn’t constitute a trend, the potential risk to construction from the rising number of COVID cases in these regions is significant.”
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.