The Increase in January Construction Spending is a Big Deal
Despite the surprisingly harsh winter conditions, January saw the highest year-over-year increase in construction spending in the last 8 years. The data, provided by the Associated General Contractors of American (AGC) showed that the growth was observed in public construction, private residential and non-residential construction.
Out of the three, the biggest increase was “limited to homebuilding and multifamily residential construction”, according to Ken Simonson, AGC’s chief economist. Put into numbers, January spending was 0.1% higher than that of December and 9.3% higher than the same time last year. The last time such growth was observed was May 2006.
Still, it’s not clear whether the data analysis, conducted by the Census Bureau is absolutely accurate, because of the impact of cold temperature. One of the categories that may seen an adjustment is highway and street construction, where trust funds are in danger of running dry this summer, unless Congress take urgent measures and passes a new transportation funding bill to address pressing issues.
Read the full story on AGC’s website.