Economy

AGC: Construction spending up for fifth consecutive month in November

January 3, 2024

An increase in residential construction brought total construction spending up by 0.4% in November, according to a report from the Associated General Contractors of America (AGC). The uptick offsets a slowdown in public spending.

Construction spending totaled $2.050 trillion in November, a 0.4% increase over October.

“Private construction spending is showing renewed vigor in homebuilding and selected private nonresidential categories, while developer-financed spending languishes,” AGC’s chief economist Ken Simonson said in a statement on Jan. 2.

Private residential construction increased by 1.1% while multifamily builds inched up 0.1%.

Spending on private nonresidential construction increased for the fifth consecutive month by 0.2%, AGC said. However, the largest segment was manufacturing construction, which rose by 0.5%. Overall commercial construction fell by 0.5%.

Decreased funding for public construction on education, transportation, and other infrastructure categories led to a 2.2% drop in November, according to AGC. But highway and road construction increased by 0.1%.

The AGC is set to release its 2024 outlook on Thursday, Jan. 4.

Becca Moczygemba

Becca Moczygemba is a reporter and editor for Steel Market Update. She has been in the steel industry since 2017, specializing in flat-rolled products. Prior to joining SMU, she held positions at Mitsui & Co. and Kloeckner Metals. Becca has a BA in Organizational/Corporate Communication from the University of Houston and an MBA from Norwich University. Contact Becca at becca@steelmarketupdate.com or 724-720-1000.