Total construction starts rose 17% in July to a seasonally adjusted annual rate of $1.2 trillion, Dodge Construction Network said Wednesday. Nonbuilding starts drove the increase, rising 38%, due to the start of a single large LNG facility in Texas. Residential starts rose 20%, while nonresidential building starts lost 6%.

Year-to-date through July, total construction starts were 7% below that of 2022, Dodge reported. Residential and nonresidential starts were down 21% and 7%, respectively; however, nonbuilding starts were up 20% on a YTD basis. On a trailing 12-month basis, total construction starts were 3% higher than that of 2022.

“Construction starts have plateaued and are making little headway,” said Richard Branch, chief economist for Dodge Construction Network. “Higher interest rates, labor shortages and material prices continue to impact the flow of construction starts — resulting in little forward momentum over the past 12 months. The lag in nonresidential building projects entering the planning stage will slow starts as the year progresses, which should be offset by rising infrastructure activity.”