Dodge Data & Analytics, New York, has reported construction starts jumped 27% in December 2022 after falling in November 2022 as manufacturing and infrastructure projects drove gains.
“December starts revealed where the current strength in the construction lies: manufacturing and infrastructure,” said Richard Branch, chief economist for Dodge Construction Network. “It is those segments that will provide insulation for the sector as the economy softens in 2023. Recession or not, higher interest rates will weigh on the economy and restrain construction starts in 2023. However, it’s encouraging to know that the new year is starting with a great deal of positive momentum.”
Nonresidential building construction soared 51% in December 2022 as numerous large manufacturing projects began and manufacturing starts jumped 596%. Commercial starts declined 10%, and institutional starts rose 11%.
Residential building construction was unchanged in December 2022. Single-family housing declined 5%, and multifamily starts increased 8%.
Nonbuilding construction climbed 30% in December 2022.
In 2022, nonresidential building was up 38% compared with 2021. Residential building dropped 3%, and nonbuilding construction increased 19%.