Despite continued uncertainty surrounding the economy’s future, total construction starts jumped 3% in March to a seasonally adjusted annual rate of $1.1 trillion. According to Dodge Construction Network’s (DCN) monthly total construction starts index, nonresidential building starts grew by 6%, while residential starts decreased by 5%.

On a year-to-date basis through March, total construction starts were down 1% from last year. Nonresidential starts were down 9%, and residential starts were down 5%. On a year-to-year basis, total construction starts jumped 4%, residential starts were up 2%, and nonresidential starts grew by 3%.

“Construction activity grew over the month, but sector-specific data continued to show mixed trends,” says DCN’s chief economist Eric Gaus. “Looking ahead, growing uncertainty around trade policy and the economy’s direction will likely weigh on construction activity. Rising delays in the planning pipeline suggest developers are already bracing for impact, grappling with higher tariffs, dwindling federal funding, and ongoing labor shortages. We expect headwinds to grow as long as the uncertainty remains.”