Construction Officials Caution that Demand for Non-Residential Construction Will Continue to Stagnate without New Federal Coronavirus Recovery Measures, Including Infrastructure and Liability Reform
Construction spending increased by 1.4 percent in August as strong gains in residential construction outweighed decreases in most private nonresidential segments and many public categories, according to an analysis by the Associated General Contractors of America of government data released. Association officials cautioned that nonresidential construction demand will likely continue to stagnate without new federal measures to offset the economic impacts from the coronavirus.
“The August spending report shows a stark divide between housing and nonresidential markets that appears likely to widen over the coming months,” said Ken Simonson, the association’s chief economist. “With steadily rising business closures and worker layoffs, and growing budget gaps for state and local governments, project cancellations are likely to mount and new starts will dwindle.”