Construction Starts Declined 9% in April

UK construction activity faced significant headwinds in April, with total starts declining by 9% to a seasonally adjusted annual rate of $1.03 trillion, according to Dodge Construction Network. This broad-based contraction, encompassing nonresidential (-3%), residential (-4%), and a sharp fall in nonbuilding (-22%), marks a troubling signal for the sector. Eric Gaus, chief economist at Dodge, attributed the slowdown to delays in the planning pipeline and heightened economic and trade policy uncertainty, particularly following April's tariff announcements. While the headline figures paint a bleak picture, a deeper analysis reveals some divergent trajectories. Year-to-date, total starts are down 3%, with nonresidential contracting 10% and residential 5%. However, nonbuilding starts have shown resilience, climbing 8% year-to-date, driven by utility/gas and highway projects. Over the 12 months ending April 2025, overall starts managed a modest 2% gain, with nonbuilding up 5% and nonresidential 1%. Manufacturing starts notably surged 78% in April, offering a counterpoint to the commercial sector’s 21% fall. The outlook suggests that volatility stemming from trade policy and broader economic direction will continue to weigh on construction activity in the coming months, necessitating careful strategic navigation by industry leaders. Read More