Dodge Data & Analytics, New York, has reported construction starts fell 19% in September after robust activity during previous months.
“September’s decline in construction starts should not be seen as a precursor to a cyclical pullback in the industry,” said Richard Branch, chief economist for Dodge Construction Network. “The previous two months saw the start of several megaprojects, and the decline in September returns starts activity to its trend level. It is likely, however, that as interest rates move higher in the coming months, marginal construction projects may not get underway and construction activity will begin to settle back.”
Nonresidential building construction fell 23% in September as commercial starts rose 2%, manufacturing starts dropped 22% and institutional starts declined 39%.
Residential building construction fell 11% in September. Single-family housing declined 7%, and multifamily starts decreased 16%.
Nonbuilding construction fell 25% in September.
For the 12 months ending in September, nonresidential building was up 34% compared with the 12 months ending September 2021. Residential building rose 2%, and nonbuilding construction increased 17%.
