Total Construction Starts Post Big Gains in July, Yet Residential Slips
Total construction starts rose 48% year-over-year in July to a seasonally adjusted annualized $1.36 trillion, said Dodge Construction Network. The dollar-amount gains resulted from starts on three large manufacturing plants and two LNG export facilities.
However, even without these projects, total starts still would have increased 7%. Nonresidential building starts rose 79% in July, and nonbuilding starts jumped 120%. Conversely, residential starts decreased 8%.
“Mega-projects aside, construction continues to improve despite the pressure created by higher interest rates and labor scarcity,” said Richard Branch, chief economist for Dodge Construction Network. “Combined with the strong labor market, this is another indicator that the U.S. is not currently in a recession.
“However, the Federal Reserve will continue to aggressively raise interest rates until they feel that inflation is under control. This will create mounting pressure on building activity and potentially lead to a slowdown in construction starts by year-end.”
Pictured: Intel’s $10-billion semiconductor plant in Ohio, which broke ground in July. Rendering courtesy of Intel.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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