Dodge Data & Analytics, New York, has reported construction starts fell 15% in November after falling 7% in October.
Nonresidential building construction dropped 29% in November as manufacturing starts plunged 74%. Commercial starts fell 19%, and institutional starts rose 7% because of a boost in health care activity.
Residential building construction fell 6% in November. Single-family housing rose 1%, and multifamily starts fell 19%.
Nonbuilding construction declined 2% in November.
“Construction starts are deeply feeling the impact of higher rates,” said Richard Branch, chief economist for Dodge Construction Network. “While the Federal Reserve seems poised to start cutting rates in the New Year, the impact on starts will lag. As a result, starts are expected to be weak through the mid-point of 2024 before growth resumes.”
Year to date through November 2023, total construction starts were down 4% compared with 2022. Nonresidential building fell 7%; nonbuilding construction grew 19%; and residential building dropped 14%.
