Dodge Data & Analytics, New York, has reported construction starts fell 7% in October after falling 6% in September.
Nonresidential building construction rose 8% in October as several large manufacturing plants broke ground. Commercial starts fell 18% and institutional starts fell 15%.
Residential building construction fell 1% in October. Single-family housing dropped 2%, and multifamily starts were unchanged.
Nonbuilding construction declined 32% in October.
“Construction starts have weakened over the last two months as high interest rates and tight credit have restrained activity,” said Richard Branch, chief economist for Dodge Construction Network. “While it seems likely that the Federal Reserve will hold off raising rates further, it will take time until they consider easing. This will likely result in a continued softening in construction starts over the next several months.”
For the 12 months ending October 2023, total construction starts were down 1% compared with the 12 months ending October 2022. Nonresidential building rose 1%; nonbuilding construction grew 22%; and residential building dropped 15%.
