Store construction declined 4 percent in September: Report

New construction starts in September fell by 5 percent from the previous month, to $709.6 billion, according to Dodge Data & Analytics. This follows 9 percent declines for both July and August, as well as the year's high, in June. 

Categorizing by sector, nonresidential construction weakened in September, sliding by 6 percent.  Nonbuilding construction dropped by 13 percent for the month, as a consequence of sharp retrenchment in the electric utility and gas plant category, while public works held steady. 

Nonresidential building in September was at some $236.4 billion (as an annual rate). The 13 percent decrease for the commercial building categories as a group was a retreat for the third month in a row.  September's office construction dropped by 38 percent versus August. Stores and warehouses also weakened, with each of those posting a 4 percent decline. Hotel construction was unchanged month on month.  Meanwhile, the commercial garage category was the single commercial project type to report a September gain, rising by 40 percent after a lackluster August. 

Residential building was the one major sector to rise in September, by 2 percent. Through the first nine months, total construction starts on an unadjusted basis were at $599.9 billion, off by 1 percent from the year-ago period.