Dodge Data & Analytics, New York, has reported construction starts fell 19% in June after climbing 10% in May.
Nonresidential building construction fell 13% in June as manufacturing fell 34% and institutional starts fell 19%. Commercial starts grew 4% because of gains in office, data center and retail starts.
Residential building construction rose 9% in June. Single-family housing rose 4%, and multifamily starts jumped 23%.
Nonbuilding construction decreased 46% in June.
For the 12 months ending June 2024, total construction starts were up 1% compared with the 12 months ending June 2023.
Nonbuilding construction grew 8%; nonresidential building fell 7%; and residential building rose 7%.
“The construction market remains sluggish as high interest rates continue to reverberate through the sector,” said Richard Branch, chief economist for Dodge Construction Network. “However, the Dodge Momentum Index, which tracks nonresidential building projects entering the planning phase, has been reasonably steady over the last year, indicating that owners and developers remain cautiously optimistic that the conditions will be more conducive to construction in the future. But moribund starts activity means that these projects are piling up like water behind a dam. Lower rates in 2024 will allow these projects to start flowing again, resulting in a quicker pace of activity toward year-end.”
