Dodge Data & Analytics, New York, has reported construction starts rose 3% in April as many building sectors move toward recovery.
“The construction sector is seemingly shrugging off the fear of higher interest rates and a potential recession,” said Richard Branch, chief economist for Dodge Construction Network. “Many building sectors have made the turn from weakness to recovery as underlying economic growth and hiring are solid. With the pipeline of projects in planning continuing to expand, this trend should continue in the months to come. However, the concern that the Federal Reserve will force the U.S. into recession later this year may thwart the momentum in construction starts. While recession is not our baseline forecast, it cannot be fully discounted.”
Nonresidential building construction rose 6% in April as commercial construction rose 2%, institutional starts grew 8% and manufacturing starts climbed 16%.
Residential building construction rose 4% in April. Multifamily starts rose 13%, and single-family housing grew 1%.
Nonbuilding construction fell 4% in April.
For the 12 months ending in April, nonresidential building was up 24% compared with the 12 months ending April 2021. Residential building rose 11%, and nonbuilding construction fell 1%.