Steel Markets
Construction Spending Up in May: AGC
Written by Becca Moczygemba
July 6, 2023
Total US construction spending increased in May by 0.9% from April and 2.4% year-over-year (YoY), according to the Associated General Contractors of America (AGC).
“The data for May show there has been no letup in the feverish pace of manufacturing construction but a very mixed picture for other project types,” said Ken Simonson, chief economist of AGC. “There have been strong year-over-year increases in most categories, but it remains to be seen if the market is now cooling.”
Construction spending in May, not adjusted for inflation, came to a seasonally adjusted rate of $1.925 trillion. Private nonresidential construction fell 0.3% month-over-month (MoM) while residential construction increased 2.2% MoM.
Public nonresidential spending was mixed, increasing overall by only 0.1% MoM. Highway and road construction dropped 0.4% from April, and transportation facilities fell 0.8%, according to AGC. However, sewage and waste disposal saw a bump of 1.1%, while water supply construction moved up 2.6%.
Manufacturing construction increased 1% MoM and has surged 76.9% YoY, AGC said.
AGC officials have asked the Biden administration to clarify the parameters for utilizing American-made construction materials, apprenticeship programs, and tax credits to fund energy projects.
“Contractors are eager to build the infrastructure Congress has approved,” said Stephen E. Sandherr, AGC’s CEO. Officials said the lack of clarity is an obstacle for bidding on projects or moving forward with ones that have been secured.
“It’s up to federal officials to make sure these projects can get built by issuing timely and clear rules that are consistent with Congressional intent,” Sandherr added.
By Becca Moczygemba, becca@steelmarketupdate.com
Becca Moczygemba
Read more from Becca MoczygembaLatest in Steel Markets
US importers face stricter rules under revamped S232 tariffs
“CBP expects full compliance from the trade community for accurate reporting and payment of the additional duties. CBP will take enforcement action on non-compliance," the agency said in a March 7 bulletin.
Steel exports rebound in January
US steel exports recovered to a five-month high in January after having fallen to a two-year low in December. This growth follows four consecutive months of declining exports.
Construction spending drops marginally in January
Construction spending edged down slightly in January, slipping for the first time in four months. The US Census Bureau estimated spending at a seasonally adjusted annual rate of $2,196 billion in January, down 0.2% from December’s downward revised rate. The January figure is 3.3% higher than a year ago. January’s result, despite the slight erosion, […]
HVAC equipment shipments slow in December but strong annually
Shipments of heating and cooling equipment in the US fell to an 11-month low in December, according to the latest data released by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI).
Apparent steel supply rebounds in December, but 2024 total at 4-year low
Apparent US steel supply rebounded in December, but 2024 was still the lowest level for supply since 2020.