U.S. construction starts increased 12.8% in March to a seasonally adjusted annual rate of $1.22 trillion, according to Dodge Construction Network.
The biggest gains came from nonbuilding construction, which includes utility and infrastructure projects, rising 37.9% for the month. Nonresidential building starts increased 6.3%, while residential construction rose 2.6%.
Large utility and power projects helped drive the increase in nonbuilding activity. Manufacturing construction also rebounded strongly in March after a slower February.
Commercial construction showed mixed results. Hotel and retail projects increased, while office, warehouse and data center projects declined.
Even with the March jump, total construction starts were down 0.5% through the first three months of 2026. Residential construction saw the largest decline, down 7.2% year to date.
Dodge Chief Economist Eric Gaus said commercial construction remains one of the stronger areas of the market over the past year.
