Construction Spending Grows 0.5 Percent in June to $1.94 Trillion Annual Rate as Demand Rises
Solid gains in commercial, manufacturing and office construction offset declines in power, 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 Aug. 1. 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.
“Despite high interest rates, private sector demand for most types of construction activity continues to expand,” said Stephen E. Sandherr, the association’s chief executive officer. “Ironically, demand softened in sectors like power and highway and street construction, where Washington has directed significant sums.”