Dodge Data & Analytics, New York, has reported construction starts fell 1% in March after falling 8% in February.
Nonresidential building construction fell 9% in March as manufacturing starts dropped 58%. Commercial starts fell 1%, and institutional starts climbed 4% as large health care projects began.
Residential building construction grew 1% in March. Single-family housing rose 9%, and multifamily starts declined 14%.
Nonbuilding construction increased 7% in March.
For the 12 months ending March 2024, total construction starts were up 1% compared with the 12 months ending March 2023. Nonbuilding construction grew 18%; nonresidential building fell 8%; and residential building was unchanged.
“The construction sector has hit a soft patch to start 2024,” said Richard Branch, chief economist for Dodge Construction Network. “However, this should not be overly surprising given high rates and restrictive credit. There are bright spots though as single-family starts are moving higher and federal dollars are lifting nonbuilding starts. The recent hot inflation readings likely mean that rate cuts won’t happen until later in the year, and as a result, the commercial and multifamily sectors will continue to languish.”
