Home Building Leads October Construction Spending

Private nonresidential construction spending slipped 0.7 percent in October for its fourth consecutive month of decline. Commercial construction, comprising retail, warehouse and farm structures, slid 1.0 percent, said AGC. Power and manufacturing construction both slid 0.8 percent from September to October and office construction edged downward 0.2 percent.

Public construction spending increased 1.0 percent in October and 3.7 percent from a year ago. Highway and street construction spending, the largest public category, rose 1.6 percent. Educational construction increased 1.1. percent and transportation construction spending rose 1.0 percent.

Along with the 5.6 percent jump in single-family construction, spending for multifamily construction rose 1.2 percent and spending for improvements was flat.

“The October spending report shows private nonresidential construction is continuing to slide,” said Ken Simonson, the association’s chief economist. “Public construction spending has fluctuated in recent months, but both types of nonresidential spending have fallen significantly from recent peaks this year and appear to be heading even lower.”

AGC continues to lobby Congress and the administration for new infrastructure spending as well as strengthening the Paycheck Protection Program and protecting firms from frivolous coronavirus liability lawsuits.

“As long as the coronavirus undermines private sector confidence and public sector budgets, the only way to save good-paying construction careers is through new federal relief measures,” said Stephen E. Sandherr, AGC’s chief executive officer. “Fixing the nation’s infrastructure, preserving the benefits of the PPP program and protecting honest employers will give the economy a much-needed short-term boost.”