8 Business View - March 2015
Opening
Lines
The value of new construction starts climbed 9 per-
cent in January to a seasonally adjusted annual rate
of $621.0 billion, according to Dodge Data & Analytics.
The increase for total construction was the result of an
especially strong performance by the nonbuilding con-
struction sector, which benefitted from the start of a
massive liquefied natural gas terminal facility in Texas.
Meanwhile, nonresidential building lost momentum
for the second month in a row and residential building
pulled back due to a slower pace for multifamily hous-
ing. On an unadjusted basis, total construction starts
in January were reported at $43.2 billion, up 18% from
the same month a year ago.
The January statistics raised the Dodge Index to 131
(2000=100), compared to 120 for December although
still short of the most recent high of 143 reached in
November. For the full year 2014, the Dodge Index av-
eraged 122.
“During 2014 and now early 2015, themonth-to-month
pattern for construction starts has often reflected the
presence or absence of exceptionally large projects,”
said Robert A. Murray, chief economist for Dodge Data
& Analytics. “For much of 2014, a substantial share of
this work was petrochemical-related, such as a $3.0
billion Exxon petrochemical plant expansion in Texas.
Towards the end of last year, a pickup in liquefied
natural gas-related facilities emerged, led by the start
of the $3.6 billion Dominion Cove Point Liquefaction
Project in Maryland, and January included $6.0 billion
estimated for the start of two segments of a huge liq-
uefied natural gas export facility in Texas.
“The month-to-month variation for overall construction
starts is taking place around what is still a rising trend.
For nonresidential building, the continued improve-
January Construction
Climbs 9 Percent
