Total construction starts jumped 27 percent in December to a seasonally adjusted annual rate of $1.185 trillion, according to Dodge Construction Network. During the month, nonresidential building starts increased by 51 percent, nonbuilding starts increased by 30 percent, and residential starts rose less than one percent.
Across 2022, total construction starts were 15 percent higher than in 2021. Nonresidential building starts rose 38 percent over the year, nonbuilding starts were up 19 percent, and residential starts were down three percent.
What Dodge says
“December starts revealed where the current strength in construction lies: manufacturing and infrastructure,” says Richard Branch, chief economist for Dodge Construction Network. “It is those segments that will provide insulation for the sector as the economy softens in 2023. Recession or not, higher interest rates will weigh on the economy and restrain construction starts in 2023. However, it’s encouraging to know that the new year is starting with a great deal of positive momentum.”
