According to new Dodge Construction Network data, total construction starts fell 4% in April to a seasonally adjusted annual rate of $1.04 trillion. This marks a slowdown after two consecutive months of increases.

Nonresidential starts led the decline, falling 22%. This was balanced by a 7% rise in nonbuilding starts and a 12% increase in residential building starts. On a year-to-date basis through April, total construction starts were 7% below the first four months of 2022. Residential starts were down 27%, and nonresidential and nonbuilding starts rose 7% and 16%, respectively. Total construction starts are 11% higher than the 12 months ending April 2022, with nonresidential and nonbuilding starts showing gains of 34% and 24%, respectively, while residential starts marked a 13% decline. 

“The construction sector continues to sweep its economic worries under the rug, even with inflation, unstable banking, and the potential breach of the U.S. debt ceiling,” said Dodge Construction Network chief economist Richard Branch. “While the presence of, or lack thereof, large manufacturing projects each month has made the data more volatile, the underlying trends point to a very healthy sector. However, this is likely transitory. The Dodge Momentum Index, which tracks projects entering the earliest stages of planning, is falling, which should lead to weaker starts in the second half of the year — especially for the private sector.”

The dip in the nonresidential sector in April was carried by a major 68% decline in manufacturing starts. This sharp decrease follows a strong March when numerous large manufacturing plants took off. Nonetheless, the $1.2 billion Hawha Qcells solar manufacturing plant in Cartersville, Georgia broke ground in April.

The utility/gas plant category drove the gains in the nonbuilding sector with a 76% rise. The largest nonbuilding project to break ground last month was the $750 million Magnolia Power/Kindle Energy generating station in Plaquemine, Louisiana. 

Residential building starts were supported by 14% and 10% increases in single-family and multifamily starts, respectively. The $549 million Mana’olana Place mixed-use building in Honolulu, Hawaii was the largest multifamily structure to break ground last month. 

Regionally, total construction starts in April fell in the Midwest, South Atlantic, and South Central regions, and rose in the Northeast and West.