Dodge Data & Analytics, New York, has reported construction starts climbed 17% in July after falling 9% in June.
Nonresidential building construction dropped 6% in July as manufacturing starts fell 39%. Commercial starts rose 11% and institutional starts climbed 8%.
Residential building construction rose 20% in July. Single-family housing climbed 2%, and multifamily starts declined 14%.
Nonbuilding construction surged 38% in July.
“Construction starts have plateaued and are making little headway,” said Richard Branch, chief economist for Dodge Construction Network. “Higher interest rates, labor shortages and material prices continue to impact the flow of construction starts—resulting in little forward momentum over the last 12 months. The lag in nonresidential building projects entering the planning stage will slow starts as the year progresses, which should be offset by rising infrastructure activity.”
For the 12 months ending July 2023, total construction starts were up 3% compared with the 12 months ending July 2022. Nonresidential building rose 16%; nonbuilding construction grew 21%; and residential building dropped 17%.
