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The dip follows Branch\u2019s warning last month that starts were \u201c<\/span><\/span><\/span><\/span><\/span><\/span>likely to erode<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a>\u201d from their previous highs, and in many cases, that is beginning to play out on a monthly basis.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n The mixed monthly bag across different sectors in April led Branch to conclude that construction\u2019s staying power could be temporary.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span>The Dodge Momentum Index, which tracks projects entering the earliest stages of planning, is falling<\/a> and \u201cshould lead to weaker starts in the second half of the year \u2014 especially for the private sector,\u201d he said.<\/p>\n For example, nonresidential building starts declined 22% in April to a seasonally adjusted annual rate of $383 billion, predominantly due to the sharp decline in manufacturing builds. Still<\/span><\/span><\/span><\/span><\/span><\/span>, on a year-to-date basis, manufacturing starts remained up 4% compared to the first four months of 2022, according to the report.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Meanwhile, commercial starts, which include retail, warehouse, office, garage and hotel, increased 5% in April. But institutional starts, including schools and hospitals,\u00a0pulled back 13%, due to slower activity in healthcare construction. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n The largest nonresidential building projects to break ground in April included:<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n <\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n While down 27% year-to-date, residential building starts jumped 12% in April to a seasonally adjusted annual rate of $373 billion. Both single-family and multifamily starts posted strong activity for the month, growing 14% and 10%, respectively, according to the report. The largest multifamily structures to break ground in April included:<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Nonbuilding construction starts, such as infrastructure projects, jumped 7% in April to a seasonally adjusted rate of $281 billion. The utility and gas plant category soared 76% in the month,\u00a0while street and bridge starts climbed 5%, according to the report.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n The largest nonbuilding projects to break ground in April included:<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Dodge\u2019s Momentum Index, which measures nonresidential building planning, dropped for the <\/span><\/span><\/span><\/span><\/span><\/span>second consecutive month in April<\/a>, when it lost 5.1%. The index typically leads actual construction activity spending by 12 months.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nNonresidential building<\/span><\/span><\/span><\/span><\/span><\/span><\/h3>\n
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Residential building<\/span><\/span><\/span><\/span><\/span><\/span><\/h3>\n
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Nonbuilding construction<\/span><\/span><\/span><\/span><\/span><\/span><\/h3>\n
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Cloudy forecasts ahead<\/strong><\/h3>\n