Following robust increases in the value of new construction starts in May and June, 14% and 11% respectively, July starts dropped 9% to a seasonally adjusted annual rate of $817.4 billion, according to the latest report from Dodge Data & Analytics. This contraction forced the Dodge Momentum Index down to a reading of 173 from a 2018 high of 190 in June.
The pace of residential and nonbuilding starts remained relatively unchanged through the end of July, but the value of nonresidential starts plunged 22% to an annual rate of $318 billion, particularly noteworthy since June saw activity in that sector increase by 59%.
