Construction Starts Jump 20%

2024 provides promise that positive momentum will continue to build, largely due to the expectation of lower interest rates, said Richard Branch, chief economist for Dodge Construction Network.

The American Institute of Architects’ Architecture Billings Index, which tracks architectural design activity, also showed some positive signs, with fewer firms reporting a decline in billings. The ABI is a leading indicator of construction activity nine to 12 months out.

Among one of the favorites for heightened activity this year, manufacturing construction starts rebounded 75% in December. The subsector, composed of electric vehicle battery factories and semiconductor fabrication plants, helped boost overall nonresidential building starts by 37% in December to a seasonally adjusted annual rate of $479 billion, according to the report. 

Meanwhile, commercial starts, which include retail, office and warehouse projects, increased 48%, with all subcategories posting sizable growth, according to the report.

For more highlights from the report, read the full article from our sister publication Construction Dive.