Construction Economic News

The accompanying table records the top 10 project starts in the United States for November 2022.

Megaprojects are 2022’s Story of the Year ConstructConnect announced today that December 2022’s volume of construction starts, excluding residential work, was $50.1 billion, an increase of +58.1% compared with November’s figure of $31.7 billion (originally reported as $31.1 billion). After a relatively quiet month for megaproject starts (i.e., those of a billion dollars or more each) in November, they came roaring back in the latest month.

Fighting through the headwinds of more restrictive interest rates, the U.S. economy managed another good month of jobs creation in December, +223,000, according to the Bureau of Labor Statistics. It should be noted, however, that the month-to-month increase in nationwide employment has been gradually diminishing over the past six months.

Given the increases in mortgage rates that have transpired, significant slides in homebuilding activity are being taken for granted in the United States and Canada. Based on the latest housing starts statistics, this is already underway and clearly apparent in the former more than in the latter. See Graph 8 below, where Canadian housing starts have been moving mostly sideways throughout this year, while U.S. starts have been exhibiting significant declines month to month.

Canada has become much more than a natural resource-based economy.

Megaprojects Take a Back Seat in November ConstructConnect announced today that November 2022’s volume of construction starts, excluding residential work, was $31.1 billion, a decline of -36.3% compared with October’s figure of $48.9 billion (originally reported as $47.5 billion; the difference coming mainly in the multi-unit residential subcategory of starts).

The accompanying table records the top 10 project starts in the United States for November 2022.

Clichés are often true and it is the case that a picture can be worth a thousand words.

Much of the world may be taking a break as yearend approaches, but that doesn’t mean the economy is kicking back with eggnog and gingerbread cookies. Public and private sector data releases are pouring forth regardless, and here are some of the nuggets to be gleaned.

As the United States added 263,000 jobs in November, Canada stood by and watched in awe. The change in total employment north of the border in the latest month, according to Statistics Canada, was only +10,000 jobs.