AGC Analysis Finds Construction Spending Rose 0.4 Percent In November

Arlington, VA — Total construction spending increased by 0.4 percent in November, as a pickup in homebuilding and some private nonresidential markets offset a downturn in public spending, according to an analysis of federal spending data the Associated General Contractors of America.

“Private construction spending is showing renewed vigor in homebuilding and selected private nonresidential categories, while developer-financed spending languishes,” said Ken Simonson, the association’s chief economist. “Unfortunately, public construction spending appears to have stalled.”

Construction spending, not adjusted for inflation, totaled $2.050 trillion at a seasonally adjusted annual rate in November. That figure is 0.4 percent above the upwardly revised October rate. Spending on private residential construction rose by 1.1 percent, as single-family construction climbed for the seventh-straight month, by 2.9 percent. Spending on multifamily projects edged up 0.1 percent.

Spending on private nonresidential construction rose 0.2 percent in November, the fifth consecutive monthly increase. The largest segment, manufacturing construction, climbed 0.5 percent. Among other large private categories, commercial construction—comprising warehouse, retail, and farm projects—declined 0.5 percent, while investment in power, oil, and gas projects rose 0.8 percent. Spending on offices and data centers, as well as private health care facilities, was virtually unchanged.

Public construction spending slumped 2.2 percent in November despite a minimal 0.1 percent increase in the largest category, highway and street construction. Spending on educational structures slipped 0.3 percent. Spending on transportation facilities fell 1.0 percent. Spending on other infrastructure categories tumbled even more: 1.6 percent for sewage and waste disposal, 1.4 percent for water supply, and 4.4 percent for conservation and development.

About The Associated General Contractors Of America

The Associated General Contractors of America (AGC) is a leading association for the construction industry. AGC represents more than 26,000 firms, including over 6,500 of America’s leading general contractors, and over 9,000 specialty-contracting firms. More than 10,500 service providers and suppliers are also associated with AGC, all through a nationwide network of chapters. To learn more, visit www.agc.org.