The U.S. construction industry saw a mix of growth and slowdown in August 2025, as Dodge Construction Network reported a slight rebound in total construction starts despite a cooling pace in several categories.
According to Dodge, total construction starts increased 1.7% in August, reaching a seasonally adjusted annual rate of $1.23 trillion. The rise comes after a sharp 10% decline in July.
“Construction activity continues to present a mixed picture,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “Large-scale megaprojects continue to support overall activity, but with mounting signs of economic softness, the pace of growth is beginning to moderate.”
Nonresidential building starts dropped 5.4% in August, following a sluggish July. Commercial starts took the largest hit, falling 12% as every major subsector saw declines. Warehouse starts plummeted 25.3%, while retail projects slid 11.3%.
Manufacturing construction continued its downward trend, dropping 24.4% in August, following an even steeper 84.8% decline in July. Despite this, year-to-date nonresidential starts are still up 3.4% compared to 2024. Commercial projects rose 7.6% over the first eight months, though institutional projects—such as education and healthcare—dipped 0.7%.
Over the past year, however, the longer-term trend remains positive: nonresidential starts climbed 4.8%, with commercial up 17.4% and institutional up 6.1%.
Infrastructure construction showed signs of strain as highway and bridge projects declined 5.6% in August. Still, overall nonbuilding starts rose 9.3%, supported heavily by a nearly 40% surge in utility-related projects. Over the 12 months ending in August 2025, total nonbuilding groundbreakings were up 12.1%.
On the residential side, activity improved modestly. Housing starts increased 2.4% in August, boosted by a strong 15.5% gain in multifamily projects. Single-family housing, however, continued to lag, leaving total residential starts down 1.2% year-over-year.
Despite some cooling in the broader market, several high-profile projects moved forward last month:
These projects highlight the diverse range of U.S. construction activity, from energy and infrastructure investments to healthcare expansions and high-rise residential towers.
Even as the pace of new groundbreakings fluctuates, industry analysts note that large-scale projects are helping stabilize overall construction momentum heading into the final quarter of 2025.
Originally reported by Sebastian Obando in Construction Dive.