Dodge Data & Analytics, New York, has reported construction starts fell 9% in August after a large increase in July resulting from the start of three large manufacturing plants and two liquefied natural gas export facilities.
“While construction starts activity continues to be dominated by mega-projects like chip fabrication plants, the middle and lower end of the value spectrum is holding up well,” said Richard Branch, chief economist for Dodge Construction Network. “This is a sign that organic growth in the construction sector has not yet been undermined by the concern of a potential recession in 2023. While higher interest rates may undo this support in the coming months, the industry is in a very good position to continue modest growth.”
Nonresidential building construction rose 7% in August as institutional starts climbed 62%, commercial construction rose 22% and manufacturing starts fell 42%.
Residential building construction rose 1% in August. Multifamily starts increased 19%, and single-family housing declined 10%.
Nonbuilding construction fell 36% in August.
For the 12 months ending in August, nonresidential building was up 33% compared with the 12 months ending August 2021. Residential building rose 4%, and nonbuilding construction increased 15%.
