According to McGraw Hill Construction, new construction starts for October reached a seasonally adjusted annual rate of $585.6 billion after a 5% increase from the previous month. The October increase came after a huge 13% gain in total construction starts for the month of September. Total construction starts on an unadjusted rate are up 4% compared to last year during the same period, totaling at $433.0 billion.
A closer look by sector shows non-residential building was responsible for most of the construction gains in October, increasing by 20% to an annual rate of $216.9 billion. The construction of three major manufacturing plants in particular lent a great hand in the boost. These plants included a fertilizer plant in Iowa worth $1.7 billion, a natural gas processing plant in West Virginia worth $1.7 billion, and a gasification plant in Louisiana worth $1.5 billion. Residential building as a whole bounced back from a slow September, increasing by 3% in October to an annual rate of $209.5 billion. As for non-building construction, the annual rate decreased by 6% to $159.2 billion, due largely to a significant drop in electric utility construction.
To read to complete McGraw Hill Construction report, click here.