Dodge Data & Analytics, New York, has reported construction starts fell 5% in June as nonresidential building construction declined.
“Construction markets are getting jittery as the odds of recession increase,” said Richard Branch, chief economist for Dodge Construction Network. “While projects are still moving through the planning process, the velocity has downshifted, reflecting uncertainties over how rising interest rates will impact the economy, construction material prices, and ultimately, construction starts. Over the short-term, construction-facing indicators are likely to be more volatile than normal, particularly in the commercial sector.”
Nonresidential building construction fell 14% in June as commercial construction dropped 16%, manufacturing starts decreased 14% and institutional starts declined 12%.
Residential building construction fell 6% in June. Multifamily starts dropped 3%, and single-family housing declined 7%.
Nonbuilding construction grew 13% in June.
For the 12 months ending in June, nonresidential building was up 17% compared with the 12 months ending June 2021. Residential building rose 5%, and nonbuilding construction fell 2%.
