Construction Spending Posts Small Increase In July
Total construction spending ticked up from June to July, as gains in residential and public construction offset a dip in private nonresidential projects, according to a new analysis of federal construction spending data the Associated General Contractors of America released on September 1.
“Although nonresidential construction is no longer in free fall, many categories face continuing challenges,” said Ken Simonson, the association’s chief economist. “The rapid spread of the delta variant of COVID-19 is causing a pullback in re-openings and travel that may lead some owners to postpone new projects. Meanwhile, materials price increases, limited supplies of key materials, and long or uncertain delivery times are impeding the industry’s recovery.”
Construction spending in July totaled $1.57 trillion at a seasonally adjusted annual rate, an increase of 0.3 percent from June, and 9.0 percent higher than the pandemic-depressed rate in July 2020.