Dodge Data & Analytics, New York, has reported construction starts fell 6% in September after climbing 6% in August.
Nonresidential building construction fell 4% in September as manufacturing starts declined 13%. Commercial starts rose 6% and institutional starts dropped 8%.
Residential building construction fell 6% in September. Single-family housing climbed 1%, and multifamily starts declined 17%.
Nonbuilding construction declined 9% in September.
“Risks continue to mount for the construction sector,” said Richard Branch, chief economist for Dodge Construction Network. “Over the last 12 months, construction starts have essentially frozen as rates increased and credit tightened. The industry needs further adjusting as rates are expected to stay higher for longer, along with the potential for higher energy costs and continued political uncertainty. A return to broad-based growth in construction starts is still some time away.”
For the 12 months ending September 2023, total construction starts were unchanged compared with the 12 months ending September 2022. Nonresidential building rose 3%; nonbuilding construction grew 22%; and residential building dropped 16%.
