Construction Spending Slips in December, Yearly Totals Increase in Most Segments

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Construction spending declined by 0.6 percent from November to December but increased from a year earlier in most major categories, according to an analysis of new government data by the Associated General Contractors. The new spending data shows strong overall demand for construction services, but association officials cautioned that labor shortages could undermine continued growth for the industry. “This data shows moderate and balanced growth across residential, private nonresidential and public construction segments,” said Ken Simonson, the association’s chief economist. “That fits with what contractors say they expect for 2019, as the association’s survey in January revealed.” Construction spending totaled … Read more

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Construction Spending Extends Year-to-Date Gains in August, Contractors Struggle to Find Workers

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Construction spending increased 0.1 percent from July to August and 5.3 percent for eight months of 2018 combined, with continued year-to-date gains for major public and private categories, according to an analysis of new government data by the Associated General Contractors of America. Association officials said that these spending figures showed strong demand in construction across the country but that growth in the construction industry still depends on contractors’ ability to find sufficient qualified workers, urging public officials to step up support for career and technical education and to allow employment-based immigration. “Nearly all categories of construction spending continued to … Read more

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Construction Spending Extends Year-to-Date Gains in July in Most Public, Private Segments

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Construction spending increased 0.1 percent from June to July and 5.2 percent for seven months of 2018 combined, with year-to-date growth for most major public and private categories, according to an analysis of new government data by the Associated General Contractors of America. Association officials said sustained growth will depend in part on contractors’ ability to find increasingly scarce craft workers and urged public officials to step up support for career and technical education to prepare more students for construction careers. “It is striking how balanced the growth in construction spending has been so far this year,” said Ken Simonson, … Read more

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Construction Spending Reaches Record High

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Construction spending reached a record level of $1.309 trillion in May as monthly increases in residential and public investment outweighed a decline in private nonresidential outlays, according to an analysis of new government data by the Associated General Contractors of America. Association officials warned, however, that continued labor shortages and rising materials costs threaten future growth in demand. “Public construction spending has increased strongly for the past nine months and is now at the highest level since 2010, led by a rebound in infrastructure investment,” said Ken Simonson, the association’s chief economist. “Single-family home building is continuing to expand, while … Read more

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Dodge Momentum Index Inches Up in May

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The Dodge Momentum Index eked out a small gain in May, moving 1.8 percent higher to 167.8 (2000=100) from the revised April reading of 164.9. The momentum index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. May’s gain was the result of a 4.7 percent increase by the commercial component of the momentum index, while the institutional component fell 2.4 percent. The momentum index has posted solid gains through the first five months of 2018, rising 19 … Read more

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