Dodge Data & Analytics, New York, has reported construction starts rose 6% in August after rising 10% in July.
Nonresidential building construction fell 2% in August as commercial starts declined 32%, manufacturing starts dropped 21% and institutional starts climbed 13%.
Residential building construction rose 5% in August after falling 8% in July. Single-family housing climbed 7%, and multifamily starts rose 1%.
Nonbuilding construction increased 17% in August.
For the 12 months ending August 2024, total construction starts were up 2% compared with the 12 months ending August 2023. Residential building rose 6%; nonbuilding construction grew 1%; and nonresidential building climbed 1%.
“Construction starts continue to move forward at a modest pace,” said Richard Branch, chief economist for Dodge Construction Network. “Now that the Federal Reserve has begun to lower rates, the construction sector should begin to feel relief. The Dodge Momentum Index has been steady, indicating that owners and developers feel reasonably confident that market and financial conditions will improve. Improve they will, but it will take successive rate cuts before they feel comfortable moving these projects forward to start. Starts should show stronger and more consistent growth in the first quarter of 2025.”
