July Construction Activity Slides 3%
Last month's data produced a reading of 172 for the Dodge Index, down from a revised 178 for June. Nonresidential building in July dropped 8 percent to $150.6 billion. While stores and shopping centers remained even with June, other commercial categories posted declines. The July slowdown for commercial building may be an initial sign that this sector, too, will experience some loss of momentum during the coming months.
Residential building has now declined for four months in a row, as higher mortgage rates over the past year are having some dampening impact on homebuyer demand. Yet the dampening is likely to stay moderate, and even ease, given the recent pattern of mortgage rates.