Dodge Data & Analytics, New York, has reported construction starts climbed 8% in October after falling in September.
“October’s gain in construction starts is a further sign that the construction sector continues to weather the storm of higher interest rates,” said Richard Branch, chief economist for Dodge Construction Network. “While the residential sector is feeling the pain, the nonresidential building and infrastructure sectors are hitting their stride. Some weakness is to be expected as the Federal Reserve continues its battle with inflation; however, the damage should be isolated to a few verticals and not as widespread as what the industry witnessed during the Great Recession.”
Nonresidential building construction rose 9% in October as commercial starts rose 19%, institutional starts increased 8% and manufacturing starts dropped 5%.
Residential building construction fell 3% in October. Single-family housing declined 3%, and multifamily starts decreased 4%.
Nonbuilding construction rose 26% in October.
For the 12 months ending in October, nonresidential building was up 37% compared with the 12 months ending October 2021. Residential building was unchanged, and nonbuilding construction increased 17%.
