The latest data from Dodge Construction Network has shown an impressive 20% growth in new construction starts to a seasonally adjusted annual rate of $1.2 trillion for the month of December, offering encouraging statistics for the industry in a turnaround from November’s ten-month low.

For the latest month, nonresidential building starts were up 37%, while the residential and nonbuilding sectors improved by 8% and 13%, respectively. For the full year ending in December, total construction starts were down 4% compared to the previous 12-month cycle.

“Construction starts ended the year on a positive note,” Richard Branch, chief economist for Dodge Construction Network, said in a statement. “Looking ahead, the new year provides promise that positive momentum will continue to build. The planning queue is stabilizing, and the promise of lower rates should spur construction onward. While hurdles remain, including scarce labor and tight credit, 2024 should be a more positive year for the construction sector.”

The uptick recorded in nonresidential starts was propelled by a 15% jump in starts for utilities and gas plants, with another 27% recorded for the miscellaneous sector. Manufacturing starts rose by 75% to bolster the nonresidential sector. Finally, multifamily starts increased by 22% to lead the residential sector. 

The largest projects to break ground in December were the $2.7 billion Texas Instruments fabrication plant in Sherman, Texas, and the $1.3 billion Faraday Solar project in Elberta, Utah. 

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

For our summary of the latest U.S. Census Bureau data on residential construction activity, click here.