April 22, 2021
Total construction starts rose 2 percent in March to a seasonally adjusted annual rate of $825.3 billion, according to Dodge Data & Analytics. A solid gain in nonresidential building starts fueled the March gain. The Dodge Index rose 2 percent in March, to 175, 2000=100, from February’s 172. Regionally, March’s starts rose in the West, South Central, and Northeast regions, but fell in the Midwest and South Atlantic regions.
“The March increase in construction starts is certainly welcome news following the past three months of decline,” says Richard Branch, chief economist for Dodge Data & Analytics. “Construction will continue to improve as the year moves on. However, just as the pandemic is beginning to loosen its grip on the economy, logistical problems and the rapid escalation in material prices have stepped in as the primary risk to the construction sector. These issues may restrain opportunity in the coming months, causing the sector’s recovery to lag that of the overall economy.”