Construction Starts Flatline Even as Manufacturing Accelerates

Total construction starts ticked up 1% in January to a seasonally adjusted annual rate of $1.16 trillion, according to Dodge Construction Network.

Even with December’s big bounce where starts rebounded 20% off of a 10-month low in November, the marginal uptick in January means construction activity is still just barely treading water over the past year and is about 1% lower than in January 2023. 

“Construction starts are struggling to make headway in the new year,” said Richard Branch, chief economist for Dodge Construction Network. “Construction starts will continue to struggle early on in 2024 as higher interest rates and tight credit standards are slowing down projects moving through the planning cycle to start.”

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