Construction starts fell 27% in January compared to December, but the drop is not necessarily a sign of an ongoing slowdown, according to Dodge Construction Network’s chief economist, Richard Branch. January construction starts totaled a seasonally adjusted rate of $865.6 billion.
Dodge data also show that nonresidential building starts fell 38% from December, but compared to January 2022, nonresidential starts were only down 2%. Nonbuilding starts, which dropped 16% from December, were up 10% compared to a year earlier. Branch says the starts of “mega-projects” valued at $500 million or more over the last few months obscure the trend in construction activity.