Construction Spending Takes a Leap in January
With nearly all major segments showing strong 12-month gains, and total constuction spending hitting a 7-year high, January construction spending soared, pushing the total to the highest level since October 2008, according to an analysis by the Associated General Contractors of America.
Association officials said the new spending figures indicate that demand for construction remains robust amid broader economic concerns. “There were solid gains for both the month and year in apartment, nonresidential and highway construction,” said Ken Simonson, the association's chief economist. “Although favorable weather may have boosted these results, demand for many types of projects remains strong despite worries that the overall economy has slowed.”
You can find the AGC's complete news release here.
Public construction spending increased 13.0 percent from 12 months earlier. The biggest public segment—highway and street construction—leaped 15 percent for the month and 34 percent year-over-year, with this year's record warmth.
Private residential spending was flat for the month but increased 7.7 percent compared to January 2015. Spending on multifamily residential construction jumped 2.6 percent for the month and 30 percent year-over-year, while single-family spending dipped 0.2 percent from December but rose 6.6 percent compared to January 2015.
January's total for construction spending hit $1.141 trillion, which was 1.5 percent higher than December's revised numbers and 10.4 percent higher than January 2015.
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