Nonresidential construction spending fell to a two-year low in March as contractors struggled with slumping demand for most project types and growing shortages of materials, transport, and workers, according to an analysis of new federal construction spending data by the Associated General Contractors of America.

Construction spending in December exhibited sharply varied trends, with downturns from a year earlier in every private category, mixed results for public construction, and double-digit increases in residential construction, according to an analysis by AGC.

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.

Construction spending declined for the fourth consecutive month in as decreases in single-family, highway and educational projects outweighed increases in several private nonresidential categories.

Association officials urge administration officials to reconsider imposing tariffs on key trading partners, noting that the threat of sweeping new taxes on imported materials is hurting many construction employers. 

The Dodge Momentum Index increased 0.5 percent in February to 146.9 (2000=100) from the revised January reading of 146.2. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year.

Construction spending in June slipped 1.3% from the previous month’s level, to an estimated $1.206-trillion annual rate but the total rose 1.6% year over year, the Commerce Dept.  has reported.

Construction spending slipped in November from a month earlier but maintained a strong rate of year-over-year growth in all major categories, according to an analysis by the Associated General Contractors of America.