According to a recently published report from Dodge Data & Analytics, a broadly based slowdown in the construction industry registered an 11% drop in construction starts for the month of October. 

The report finds that the American economy generated $696.3 billion in construction spending in October, a sharp drop from the previous month's total that has rendered a 4% drop in construction activity overall when comparing the first 10 months of 2018 and 2019, respectively. Let's break down some of the figures in the report. 

Nonresidential Building Construction

Nonresidential building dropped 20% over the month of October, falling to $225.8 billion in total economic output. 

According to the report, the relative decline is due, in part, to the fact that September saw "very strong" construction start numbers from a series of significant projects that began construction, including the new $1 billion AC Martin-designed Consolidated Rent-A-Car Facility that broke ground at the Los Angeles International Airport, among other major projects. Otherwise, commercial starts fell 3% despite gains in the office and hotel sectors. The report also found that manufacturing and institutional projects fell by 69% and 20%, respectively, findings that counter Architecture Billings Index figures from this summer that pointed to institutional projects as one of few economic bright spots for the architecture industry. 

Nonbuilding Construction 

The report states, meanwhile, that "nonbuilding construction," including transit, electric utility, and environmental public works projects like water and waste infrastructure, dropped by 14% in October. Highway and bridge starts increased 4%, however. 

According to the report, Chicago's $2.1 billion Red/Purple Line Modernization project represents the largest nonbuilding construction project in the country. The project, designed by the Walsh-Fluor Design Build Team, a fully-integrated joint venture led by Walsh Construction Company, Fluor Enterprises, and lead designer Stantec Consulting Services, also represents the largest capital improvement ever undertaken by the Chicago Transit Authority.  

Residential Construction

The report offers a somewhat more sober take with regards to residential construction spending, which only dropped by 2% to $311.3 billion. 

Although single-family housing construction spending fell by 7%, surging multi-family construction spending rallied figures for this market sector. In all multi-family housing starts were up 14% in October. 

Here too, according to the report, Chicago led the country, where the $253 million, bKL Architecture-designed Lakeshore East-Cascade Apartment tower broke ground as the country's largest residential project in terms of cost. The Design Partners Incorporated-designed Azure Ala Mona Residential building in Honolulu added $253 million to the total, while the $230 million 40 Trinity Place condo tower in Boston, designed by The Architectural Team, also broke ground last month. 

Despite these numbers, however, the report finds that over the first ten months of the year, residential construction starts dropped 6% overall when compared to 2018.