Construction Spending Growth Looks ‘Solid Going Forward’
Date Posted: September 5, 2023
Posted In: Discussion,
From Construction Dive: National nonresidential construction spending inched up 0.1% in July to a seasonally adjusted annualized basis of $1.08 trillion, according to new Associated Builders and Contractors analysis.
The marginal gain follows a slight drop in the previous spending report, where construction spending finally reversed an 11-month streak of nonresidential spending increases.
“Since nonresidential construction hiring was strong last month, the expectation is that July’s construction spending number will prove to be an aberration,” said Anirban Basu, ABC chief economist. “Spending growth should be solid going forward, driven in large measure by several massive construction projects in development or early construction stages.”
Dive Insight:
Construction spending levels in July suggest “no letup in demand for construction workers or private-sector projects,” said Associated General Contractors of America Chief Economist Ken Simonson in the group’s own spending report.
Still, Simonson continues to caution that progress on many public infrastructure projects are likely being undermined due to a flurry of regulatory measures from the Biden administration. “Contractors are frustrated by the slow pace of new public project awards,” he said.