By Manuel Gutierrez, Consulting Economist to NKBA

 

Overall growth from the most recent government data is still nearly 14 percent ahead of the same time a year ago. 

  • Residential construction remains the strongest, up 16.6 percent in the past year for an annual pace of $851 billion.
  • Single-family homes are the strongest sub-group, pacing 20 percent above last year.  Multifamily is up only 7.8 percent.
  • Non-residential construction continues to lag, essentially flat.
  • The pace of spending for residential construction is expected to slow due to rising mortgage rates, which hit 5 percent in the latest, Mid-April report.
  • Several non-residential sectors appear to be experiencing a sustained recovery, with Office construction up 6.6 percent;  Manufacturing, up 35 percent;  Retail , up 18.8 percent; and Health Care, up 9.3 percent over a year ago.
  • At the other end of the spectrum, construction prospects are dim for Financial building (e.g., banks), down by 17 percent; Lodging and Shopping Malls, off by 25 percent;  and Movie Theaters, down by
    51 percent.