Nonresidential construction starts fall to $63.4B as the August megaproject surge fades
U.S. nonresidential construction starts slid to $63.4 billion in September, 43.5% below August's revised record of $112.1 billion, ConstructConnect reported Oct. 27. Through nine months, starts are running 26.2% ahead of 2025 at $757.9 billion.
The September figure, which combines nonresidential building and civil work, is $18.2 billion short of the $81.6 billion average for the past 12 months, according to ConstructConnect chief economist Michael Guckes. August now ranks as the biggest month on record. In its Sept. 24 report the company had put August at $99.0 billion, with a record $46.1 billion in megaprojects, meaning jobs over $1 billion.
Nonresidential building starts dropped 50.3% from August to $38.6 billion. Year to date the category is 34.7% higher at $500.2 billion, and offices, a category that includes data centers, supplied 72% of that gain. Data center megaprojects slowed to $6.3 billion across four projects in September, from $13.5 billion in August. Industrial labs are up 90.1% for the year at $9.0 billion, helped by Eli Lilly's $3.5 billion drug plant in Pennsylvania, which started in September. Prisons are up 142.1% and military work 53.4%.
Civil starts fell 28.1% to $24.7 billion but are up 12.4% for the year at $257.7 billion. Power infrastructure accounts for 68% of the civil gain, with $30.7 billion so far against $11.7 billion in the same period last year. September's large civil starts included a $4.0 billion power plant in North Dakota and a $1.6 billion substation in Texas.
The report covers nonresidential and civil projects only. ConstructConnect has not explained what drove the upward revision to August.
Why it matters: Year-to-date growth leans on offices and data centers, which supplied 72% of the building gain, and on power work. Check how your own categories are running before you staff up for spring.
Sources
- Megaprojects Drive August US Nonresidential Construction Starts to $99 BillionConstructConnect, Sep 24
- Construction Starts Fall to $63.4 Billion as August's Megaproject Surge FadesConstructConnect, Oct 27