Total construction starts fell 8% in February to a seasonally adjusted annual rate of $1.07 trillion, according to Dodge Construction Network. Nonresidential building starts dropped 16%, while nonbuilding starts lost 3%, and residential starts fell by 2%. For the 12 months ending February 2024, total construction starts were up 2% from the 12 months ending February 2023. Nonresidential building starts were down 2% while residential starts were 4% lower, and nonbuilding starts up 19% on a 12-month rolling sum basis.

Rates for insurance covering construction projects are showing signs of stabilization after a prolonged hard market cycle, according to a recent report on Q1 trends by WTW. However, the industry will continue to confront rate pressures due to inflation and interest rate uncertainty, exacerbated by a record year of natural catastrophe losses in 2023 and rising claims costs.

Construction input prices increased 1.4% in February compared to the previous month, according to an Associated Builders and Contractors (ABC) analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices increased 1.3% for the month. Overall construction input prices are 1.5% higher than a year ago, while nonresidential construction input prices are 1.8% higher.

Associated Builders and Contractors reported that its Construction Backlog Indicator declined to 8.1 months in February, according to an ABC member survey conducted Feb. 20 to March 5. The reading is down 1.1 months from February 2023. Backlog fell for every size of contractor except for those with under $30 million in annual revenues in February. Over the past year, however, the largest contractors - those with greater than $50 million in revenues - have experienced the greatest decline in backlog.