Economy
US nonresidential construction down in August: Dodge
Written by David Schollaert
September 23, 2025
US nonresidential building starts fell 5.4% in August to a seasonally adjusted annual rate of $431 billion, according to the latest data released by Dodge Construction Network.
The commercial sector bore the brunt of the decline, dropping 12.0% month on month (m/m). The cut was driven by declines in warehouse starts (-25.3%) and retail store construction (-11.3%).
“Construction activity continues to present a mixed picture,” said Sarah Martin, Dodge’s associate director of forecasting.
While overall August growth was concentrated in a few key sectors, Martin said single-family and commercial projects experienced sweeping declines.
Institutional building starts, however, bucked the trend with a 3.7% increase, driven by gains in education facilities, up 0.5%. Additionally, healthcare projects ticked 2.8% higher, and other institutional categories were up 9.9% vs. July.
“Large-scale megaprojects continue to support overall activity, but with mounting signs of economic softness, the pace of growth is beginning to moderate,” added Martin.
Manufacturing starts remain highly volatile, falling 24.4% in August after a staggering 84.8% drop in July, the report said.
Not all doom and gloom
Looking beyond the monthly dip, year-to-date data through August paints a more encouraging picture. Nonresidential starts are up 3.4% vs. August 2024. Commercial and industrial starts rose 7.6%, and institutional starts dipped slightly by 0.7%.
Over the 12 months ending August 2025, total nonresidential starts climbed 4.8% compared to 2024. Commercial starts were 17.4% higher, institutional starts improved 6.1%, while manufacturing starts declined 27.4%.
David Schollaert
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