Nonbuilding construction starts fell 36% in August to a seasonally adjusted annual rate of $278.8 billion. But if the two multi-million dollar LNG projects were excluded from July’s figures, August’s nonbuilding starts would have increased 27%, according to the report.
That shows strength outside of the high valuation projects, said Branch.
“While construction starts activity continues to be dominated by mega-projects like chip fabrication plants, the middle and lower end of the value spectrum is holding up well,” said Branch. “This is a sign that organic growth in the construction sector has not yet been undermined by the concern of a potential recession in 2023.”