Construction Activity Slows in June After Strong Megaprojects in May
Construction activity slowed significantly in June as the pace of large-scale groundbreakings from May eased. According to a report by Dodge Construction Network, total construction starts dropped 19.9% month over month to an annual rate of $1.42 trillion. The decline was attributed to a return to more normal levels after several high-profile megaprojects were initiated in the previous month. Nonresidential building activity fell 9.1%, with manufacturing construction plummeting by 62.9%. Commercial construction, however, saw modest growth of 1.2% driven by warehouse and retail projects. Nonbuilding infrastructure starts dropped sharply at 37.7%, including a significant decline in highway and utility sectors. Despite the monthly drop, year-to-date data shows nonresidential construction up 6.2%. Residential activity also softened slightly with single-family home starts down 3.4%.