Total construction starts increased in December as input prices for the industry sharply declined.
The Dodge Construction Network reported that construction starts grew 20% in December 2023 to a seasonally adjusted annual rate of $1.12 trillion.
Over the same month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index data, construction input prices declined 0.6 percent.
“Construction input prices fell sharply in December,” said Anirban Basu, ABC chief economist. “While plunging oil prices are the primary factor behind the sharp decline, most input prices were tame in 2023’s final month. That serves as a fitting end to a year during which aggregate input prices increased just 1.2% and many individual commodity prices fell.”
Mirroring the similarity of the monthly report, for the full year of 2023, total construction starts lost 4% compared to the previous year. Residential and nonresidential starts were down 13% and 8%, respectively, but nonbuilding starts were up 16%.
“Construction starts ended the year on a positive note,” said Richard Branch, chief economist for Dodge Construction Network. “Looking ahead, the new year provides promise that positive momentum will continue to build.”
Dodge Construction Network
