Construction Spending Falls in June with Declines in Residential and Nonresidential Activity Amid Growing Labor and Materials Shortages
Construction Association official says supply chain challenges and lack of workers is suppressing demand for new construction amid higher construction costs and longer schedules
Total construction spending fell by 1.1% in June as spending on new housing and nonresidential projects declined compared to May, according to an analysis the Associated General Contractors of America released today of federal spending data. Association officials said that the construction spending figures are being impacted as materials and labor shortages are slowing schedules and increasing the cost of construction.
“Strong demand for construction is being offset by rising materials prices and labor shortages,” said Stephen E. Sandherr, the association’s chief executive officer. “As firms stretch schedules and boost costs to cover rising materials prices, it is getting harder for public and private owners to proceed with some planned projects.”