Dodge Data & Analytics, New York, has reported construction starts fell 9% in June after climbing 8% in May.
Nonresidential building construction dropped 14% in June as manufacturing starts plunged 67%. Commercial starts decreased 6% and institutional starts climbed 15%.
Residential building construction fell 4% in June. Single-family housing climbed 8%, and multifamily starts declined 17%.
Nonbuilding construction fell 9% in June.
“Construction starts are oscillating—up one month and down the next,” said Richard Branch, chief economist for Dodge Construction Network. “The presence, or absence, of mega-projects is a key influencer in this trend. Nevertheless, high interest rates and tightening lending standards are leading to uncertainty among owners and developers, also creating hesitation among stakeholders, leading them to carefully assess whether projects will break ground. These conditions will persist through the remainder of the year—meaning little forward motion in construction starts.”
For the 12 months ending June 2023, total construction starts were up 9% compared with the 12 months ending June 2022. Nonresidential building rose 25%; nonbuilding construction grew 34%; and residential building dropped 17%.
