Solid Gains in Commercial, Manufacturing and Office Construction Offset Declines in Power and Highway and Street Construction Between May and June as Association Officials Call on Feds to Clarify Project Regs
Total construction spending increased by 0.5 percent in June driven by increases in most residential and nonresidential construction segments, according to an analysis of federal spending data the Associated General Contractors of America released today. Association officials noted that spending on highway and street projects declined for the month in June, however, warning that regulatory confusion around issues like Buy America rules were delaying activity on many projects.
性视界传媒淒espite high interest rates, private sector demand for most types of construction activity continues to expand,性视界传媒 said Stephen E. Sandherr, the association性视界传媒檚 chief executive officer. 性视界传媒淚ronically, demand softened in sectors like power and highway & street construction where Washington has directed significant sums.性视界传媒
Construction spending, not adjusted for inflation, totaled $1.938 trillion, at a seasonally adjusted annual rate in June. That figure is 0.5 percent above the May rate, which was revised up from the initial estimate. Spending on private residential construction increased for the second consecutive month in June, by 0.9 percent. Spending on private nonresidential construction was flat in June, while public construction investment increased 0.3 percent.
Spending was mostly positive among large nonresidential segments. The biggest component, commercial construction性视界传媒攃omprising warehouse, retail, and farm construction性视界传媒攊ncreased 0.1 percent in June compared to a month ago. Spending on manufacturing plants increased 0.3 percent between May and June. Spending on office construction grew by 0.7 percent for the month. Educational construction grew by 0.1 percent compared to the prior month. However, spending on power construction fell by 1.3 percent for the month and highway and street construction fell by 0.1 percent compared to May.
Residential spending grew by 0.9 percent from May to June. Single-family homebuilding contributed the majority share of the growth, expanding by 2.1 percent for the month. New multifamily construction also was up 1.5 percent compared to May.
Association officials said the spending increases for most categories were welcome news and a sign of continued economic strength. But they warned that confusion about some of the regulatory requirements associated with the federal construction funding 性视界传媒 including incomplete guidance on new Buy America rules 性视界传媒 was delaying many construction projects where funding has been announced, but construction has yet to start.
性视界传媒淐onfusion about some of the strings that come with the new federal construction funds is limiting the economic impact of these investments for now,性视界传媒 said Sandherr. 性视界传媒淭he sooner the administration clarifies questions around Buy America and the rules around clean energy investments, the sooner construction can begin on many infrastructure and power projects across the country.性视界传媒