Dodge Data & Analytics, New York, has reported construction starts fell 27% in January after rising 27% in December 2022.
“January’s decline in construction starts should not be taken as the beginning of a cyclical downturn in the industry,” said Richard Branch, chief economist for Dodge Construction Network. “Numerous mega-projects have begun over the last few months, obscuring the underlying trend in construction activity. While some construction sectors will face stress as the year progresses, current fundamentals point to an industry that is fairly well-positioned to weather the storm.”
Nonresidential building construction fell 38% in January after the start of numerous large manufacturing projects in December 2022. Institutional starts rose 3%; commercial starts declined 11%; and manufacturing starts plunged 91%.
Residential building construction fell 20% in January. Single-family housing declined 5%, and multifamily starts decreased 37%.
Nonbuilding construction fell 16% in January.
For the 12 months ending in January, nonresidential building was up 36% compared with January 2022. Residential building dropped 5%, and nonbuilding construction increased 18%.