U.S. construction starts rose 5 percent in October from the
previous month, the second consecutive increase, aided by
groundbreaking on some large nonresidential projects.
Construction starts in
October reached an annual rate of $585.6 billion following a
13-percent jump in September, according to the McGraw Hill
Construction division of McGraw Hill Financial, New York.
For the first 10
months of 2013, the value of all starts was up 4 percent, with
a 26-percent surge in residential construction and a 6-percent
increase in nonresidential construction more than offsetting a
17-percent drop in nonbuilding construction.
construction was up 3 percent in October over September, while
nonbuilding construction declined 6 percent, attributed mainly
to a 75-percent slump in electric utility construction.
As in the previous
month, Octobers overall increase was driven by
nonresidential construction, which rose 20 percent to $216.9
billion due primarily to a 147-percent jump in manufacturing
plant construction, led by a $1.7-billion natural gas
processing plant in West Virginia, a $1.5-billion gasification
facility in Louisiana and a $1.7-billion fertilizer plant in
While the "large and
unusual projects" responsible for the increases in September
and October means starts may grow more slowly in the near-term,
Octobers data included signs that an underlying trend in
construction growth is likely to continue despite last
months government shutdown, said Robert A. Murray, chief
economist for McGraw Hill Construction.