While it is not possible to predict whether a recession will occur in 2023, there are some indicators that the economy may be slowing down. For example, according to& Dodge Construction Network, total construction starts fell 18% in November 2022, while nonresidential building starts lost 25%, nonbuilding shed 21%, and residential starts dropped 5%.
“Month-to-month volatility in construction activity continues to reign supreme as uncertainty mounts over the economy in 2023,” said Richard Branch, chief economist for Dodge Construction Network. “Higher interest rates and fear of recession are first and foremost on the mind of most builders and developers and potentially restraining starts activity.”