Adjusted Nonresidential Construction Starts Up Strong According to Dodge Report
Total construction starts fell 12% in March to a seasonally adjusted annual rate of $903.8 billion, according to Dodge Construction Network. Nonresidential building starts lost 29%, in part due to the start of three large manufacturing facilities in the prior month. When those three large projects are removed, nonresidential starts in March would have risen 10%.
Thus, adjusted nonresidential building starts rose 10% in March.
Year-to-date, total construction was 9% higher in the first three months of 2022 than in the same period of 2021. Nonresidential building starts rose 26%, residential starts gained 3%, while nonbuilding starts were 1% lower. For the 12 months ending March 2022, total construction starts were 15% above the 12 months ending March 2021. Nonresidential starts were 25% higher, residential starts gained 15% and nonbuilding starts were down 1%.
“The volatility caused by the ebb and flow of large projects masks an underlying trend of strengthening in construction starts,” stated Richard Branch, chief economist for Dodge Construction Network.
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