US Construction Starts Slip 1.5% in September as Commercial Groundbreakings Plunge 18.4%

Total U.S. construction starts fell 1.5% month over month in September to a seasonally adjusted annual rate of $1.33 trillion, according to a Wednesday report from Dodge Construction Network, following a 24.8% pullback in August. Nonresidential starts dropped 6.3% as commercial construction tumbled 18.4%. Hotel groundbreakings fell 46.3% after a strong August, and manufacturing starts slid 21%. Institutional starts climbed 16.3%, led by a 38.4% jump in education projects, while highway and bridge work rose 20.8%. Residential starts edged down 0.3%. Despite the monthly weakness, total starts are up 14.3% through the first nine months of 2026 versus the same period last year, with nonresidential and nonbuilding starts up 23.7% and 18.4%, respectively. The largest September groundbreakings included the $4.6 billion South Valley data center in Silver Springs, Nevada, and the $4.3 billion Beacon Point data center in Robstown, Texas.