By Sebastian Obando
- Total construction starts increased 48% in July to a seasonally adjusted annual rate of $1.36 trillion despite speculation of a recession, according to Dodge Data & Analytics.
- The increase was largely driven by the 79% jump in nonresidential building starts and the 120% increase in nonbuilding starts, according to the report.
- That significant jump in construction activity “is another indicator that the U.S. is not currently in a recession,” said Richard Branch, chief economist at Dodge. However, Branch warned continued interest rate hikes could lead to a “slowdown in construction starts by year-end.”