Non residential, residential construction helps industry spending reach highest level since December 2009
The construction industry is getting some good news from the Associated General Contractors of America (AGC). According to an analysis of new federal data, construction spending in June rose to a 2-1/2 year high as double-digit percentage increases in private residential and nonresidential construction more than offset an ongoing downturn in public construction. Association officials predicted that the disparity between private and public would continue and urged policy makers to put more funding into infrastructure projects.
“The June spending gains come on top of upward revisions to May and April totals, reinforcing the notion that private construction is now growing consistently,” said Ken Simonson, the association’s chief economist. “Even more encouraging, the improvement is showing up in a wide range of residential and nonresidential categories.”
Simonson noted that total construction spending gained 0.4 percent for the month and 7.0 percent year-over-year. Private nonresidential spending climbed for the fourth consecutive month and was 14 percent higher than in June 2011. Residential construction increased 1.3 percent for the month and 12 percent year-over-year, with new multifamily construction soaring 3.4 percent and 49 percent, respectively, and single-family homebuilding up 3.0 percent and 19 percent.