Construction Starts Grew 16% in June

US construction starts experienced robust growth in June, climbing 16% to a seasonally adjusted annual rate of $1.33 trillion, according to Dodge Construction Network data. This significant uptick was primarily propelled by a 39% surge in nonresidential building starts. Commercial projects saw a notable 78% rise, while manufacturing starts soared by an exceptional 304%, driven by several large-scale investments, including major semiconductor and pharmaceutical facilities. Nonbuilding starts also improved by 2%, supported by gains in highway, bridge, and environmental public works. Conversely, the residential sector saw a marginal 1% decline, mainly in single-family housing. Despite June's strong monthly performance, year-to-date figures indicate a more modest 1% overall growth, with residential starts contracting by 5%. Sarah Martin, associate director of forecasting at Dodge, cautioned that elevated risks persist for the latter half of the year, citing ongoing uncertainties surrounding trade policy and the wider economic environment, urging senior decision-makers to temper June’s positive data with a cautious outlook. Read More