Construction Starts Jump 20%
Construction starts saw a notable 20% increase in December, reaching a seasonally adjusted annual rate of $1.12 trillion, following a three-month dip from September to November, per Dodge Construction Network. Despite this rebound, overall construction activity ended 4% lower than in 2022. Chief Economist Richard Branch is optimistic, citing a stabilized planning queue and the prospect of lower rates. Despite challenges like labor shortages and tight credit, Branch anticipates a more positive 2024 for the construction sector.
According to Construction Dive, after a 32% drop in October and another 2% drop in November, nonbuilding starts finally posted a bounceback during the last month of 2023. The sector, which includes highway, street, bridge, gas plants and environmental public works, jumped 13% in December to a seasonally adjusted annual rate of $253 billion, according to the report.
Every one of those subcategories posted gains in activity. Highway and bridge projects improved 12%, gas plants rose 15% and environmental public works increased 8%. For the full 2023 year, nonbuilding starts jumped 16%, according to Dodge.
The largest nonbuilding projects to break ground in December included:
- The $1.3 billion Faraday Solar project in Elberta, Utah.
- The $425 million San Juan 1 solar farm in Farmington, New Mexico.
- The $300 million renovation of the David Booth Kansas Memorial Stadium in Lawrence, Kansas.
