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ConstructConnect Raises 2024 US Construction Starts Forecast to 4.5% Blog Feature

By: Alex Carrick, Chief Economist on February 12, 2024

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ConstructConnect Raises 2024 US Construction Starts Forecast to 4.5%

Stronger economic outlook pushes up forecast by 1.7 percentage points

Cincinnati, Ohio, February 9, 2024 – ConstructConnect, a leading provider of software solutions for the preconstruction industry, announced that total US construction is forecast to grow at 4.5% in its Spring 2024 Construction Starts Forecast.

The forecast advanced by 1.7% on the back of a stronger economic outlook. A 3.3% annualized jump in Gross Domestic Product at the close of 2023 was stronger than expected and suggests good momentum heading into 2024.

Michael Guckes, Sr. Economist, ConstructConnect said that construction industry professionals should consider looking beyond the overall forecast and explore the details. “In 2024, overall growth stands at a mild 4.5%, yet the outlook varies widely between building categories. While medical and civil sectors are forecast to grow double-digits, government and industrial sectors are forecast to decline,” Guckes stated while adding:

“Careful project selection by building type and geography remains strategically important for construction industry professionals. ”

Michael Guckes, Sr. Economist, ConstructConnect

Highlights of the First Quarter 2024 Starts Forecast:

  • Civil projects are anticipated to grow 12.7% in the US following strong 2023. The sector includes roads, bridges, power infrastructure, water & waste treatment projects among other types.
  • Road building, the largest civil engineering sector, is expected to grow at a still healthy 5% in 2024, following double-digit growth last year.
  • Nonresidential building is expected to retreat 2.4% this year, but activity levels remain high in important sectors like manufacturing.
  • Inflation is expected to cool towards the 2% target, while The Federal Reserve appears poised to drop interest rates in the year's second half.
  • Modest growth of 7.9% in Canadian construction starts is forecast in 2024, before accelerating to 18.5% in 2025 as recessionary pressures subside. Civil engineering projects will drive new Canadian construction again in 2024.
  • A recession no longer appears in the forecast but remains a risk as the economy endures the cumulative impact of past tightening in monetary policy, less accommodating lending conditions, and restrictive fiscal policy.

The quarterly Construction Starts Forecast helps construction professionals anticipate conditions over the next 1-to-5 years to prepare for what is ahead. Produced in partnership with Oxford Economics, forecasts combine actual construction starts through the most recent quarter-end with economic analysis, historical data, and computer models.

About ConstructConnect

Construction Starts Here™ at ConstructConnect, where our mission is to help the construction industry start every project on a solid foundation. A leading provider of software solutions for the preconstruction industry, ConstructConnect empowers commercial construction firms to streamline their workflows and maximize productivity. ConstructConnect operates as a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000.



About Alex Carrick, Chief Economist

Alex Carrick is Chief Economist for ConstructConnect. He has delivered presentations throughout North America on the U.S., Canadian and world construction outlooks. Mr. Carrick has been with the company since 1985.

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