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ConstructConnect reported today in the Construction Economy Snapshot that the September 2024 volume of Total Nonresidential construction starts — the sum of Nonresidential Building and Heavy Engineering — was $54.0 billion, an increase of $2.3 billion, up 4.4%, when compared to a revised August reading of $51.7 billion.
The broader measure of Total US Construction Starts finished September at $75 billion, up 2.5% from the prior month and a gain of 1.8% from September 2023. Total US Construction Starts, the combined total of Nonresidential and Residential Starts, have retreated 0.9 percent year-to-date.
Chief Economist Michael Guckes, the report’s author, said, “Although total construction spending has little changed compared to recent measures, the three underlying pillars of construction spending —residential, Nonresidential Building, and Heavy/civil engineering — illustrate significant and diverging trends within the industry.”
Year-To-Date Readings Illustrate Broad Slowing of Industry Activity
Guckes reported that construction spending fell year-to-date through September 30, 2024, in:
- Nonresidential Building: Down 7.5 %.
(The category includes commercial, industrial, and institutional construction starts.)
- Multifamily Housing: Down 24%
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Residential Construction: Down 7.3%
Among the 25 Nonresidential Building verticals (subcategories), 11 reported more than 10 percent spending growth YTD, while another 7 contracted by more than 10 percent.
Pointing to the volatility impacting the industry — from tepid commercial real estate lenders to historically elevated interest rates, and significant variability in construction demand — Guckes provides insight on a welcomed move by the Federal Reserve in What Will Rate Cuts Do for Inflation?
Heavy Engineering construction spending continues to be a bright spot for the sector, with YTD spending up 18.7%.
Read the Construction Economy Snapshot for more details on construction labor, trend graphs, and regional analysis.
About ConstructConnect
Construction Starts Here™ at ConstructConnect, where our mission is to help the construction industry start every project on a solid foundation. A leading provider of software solutions for the preconstruction industry, ConstructConnect empowers commercial construction firms to streamline their workflows and maximize productivity. ConstructConnect operates as a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000.
