Total construction starts fell 5 percent in June to an annual rate of $932.3 billion, according to Dodge Construction Network. Nonresidential building starts lost 14 percent during the month.
Nonresidential starts increase 17 percent year over year
Year-to-date, total construction was 5 percent higher in the first six months of this year compared to the same period of 2021. Nonresidential building starts rose 13 percent. For the 12 months ending June 2022, total construction starts were 7 percent above the 12 months ending June 2021. Nonresidential starts were 17 percent higher.
“Construction markets are getting jittery as the odds of recession increase,” says 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.”
