Dodge Data & Analytics, New York, has reported construction starts rose 1% in January after climbing 20% in December 2023.
Nonresidential building construction fell 2% in January as manufacturing starts grew 26%. Commercial starts fell 14%, and institutional starts fell 1% as the education and health care sectors faltered.
Residential building construction was unchanged in January. Single-family housing fell 3%, and multifamily starts rose 6%.
Nonbuilding construction increased 9% in January.
For the 12 months ending January 2024, total construction starts were down 1% compared with the 12 months ending January 2023. Nonresidential building fell 5%; nonbuilding construction grew 17%; and residential building dropped 8%.
“Construction starts are struggling to make headway in the new year,” said Richard Branch, chief economist for Dodge Construction Network. “Construction starts will continue to struggle early on in 2024 as higher interest rates and tight credit standards are slowing down projects moving through the planning cycle to start. The Federal Reserve is expected to cut rates later this year. That will move some of these projects in the planning queue through to start and provide for a more stable rising trend in construction activity in the second half of the year.”
