The latest data from the Dodge Construction Network (DCN) indicates a 6% rise in total construction starts for February, reversing January’s declines to a new seasonally adjusted annual rate of $912.8 billion.

During the month, residential and nonresidential building starts rose by 11% and 9% respectively, while nonbuilding starts declined by 5% overall.

“February construction starts were a mixed bag that led to marginal growth,” said DCN chief economist Richard Branch said. “Single family units posted a gain for the first time in 13 months, and manufacturing starts continued to be very robust, showing signs of promise early into 2023. However, the downturn in commercial and institutional building starts could very well be the beginning of an anticipated slow-down as the construction sector pulls back in the face of higher interest rates and lagging economic growth. While this ebbing should be comparatively mild, some construction verticals could face extreme stress as the year progresses.”

The largest nonbuilding project recorded to start in the month of February was the $1.2 billion Trumbull Energy Center in Ohio. It was followed by a $350 million multi-family project in Brooklyn that led all others in that category. Regionally, starts rose in the Northeast, Midwest, and South Central regions, while declines were posted in the South Atlantic and West.

For the year, total nonresidential building starts were 27% higher than the 12 months ending in February 2022. Manufacturing starts were also 91% higher, while both institutional and commercial starts gained 18% on a 12-month rolling basis overall.