Dodge Data & Analytics, New York, has reported construction starts rose 4% in May as nonresidential building construction demonstrates resilience.
“The construction sector has become increasingly bifurcated over the past several months,” said Richard Branch, chief economist for Dodge Construction Network. “Nonresidential building construction is clearly trending higher with broad-based resilience across the commercial, institutional and manufacturing spaces. However, growth in the residential market has been choked off by higher mortgage rates and rapidly falling demand for single-family housing. Nonbuilding starts, meanwhile, have yet to fully realize the dollars authorized by the infrastructure act. While the overall trend in construction starts is positive, the very aggressive stance taken by the Federal Reserve to combat inflation risks slowing the momentum in construction.”
Nonresidential building construction rose 20% in May as commercial construction rose 35%, institutional starts grew 9% and manufacturing starts fell 5%.
Residential building construction fell 4% in May. Multifamily starts rose 8%, and single-family housing fell 10%.
Nonbuilding construction fell 2% in May.
For the 12 months ending in May, nonresidential building was up 20% compared with the 12 months ending May 2021. Residential building rose 8%, and nonbuilding construction fell 3%.