Commercial Construction Up 9% in October As We Tip Toe Around a Looming Recession

Despite rising prices and financial difficulties, the struggling U.S. construction industry has beaten the odds by recording a monthly increase in the number of nonresidential groundbreakings. According to Construction Dive's analysis of a Dodge Construction Network report, nonresidential building starts increased by 9% in October after declining by 23% in September. On the other hand, the residential market is still struggling, with 3% fewer starts in October than in the same month last year.

According to the data collected, total building starts surged by 8% in October after consecutive dips in August and September. Total year-to-date starts grew by 16%, while residential commencements were unchanged and nonresidential groundbreakings rose by 37%.

A $3.2 billion Texas Instruments chip fabrication facility in Sherman, Texas; a $2 billion General Motors Orion EV plant in Orion Township, Michigan; and a $1 billion Gevo Net-Zero 1 hydrocarbon plant in Lake Preston, South Dakota were among the largest non-residential projects to break ground in October.

According to For Construction Pros, both the producer price index and the consumer price index marginally improved last month. Furthermore, a growing number of experts believes that the United States may avoid a recession if this pattern holds and the Fed keeps raising interest rates. We are walkign a very thin line hoping to avoid a technical recession in 2023.