February Construction Spending Up, But Public Spending May be in Danger
Data, released by the Census Bureau, shows that despite unfavorable winter conditions, construction spending in February saw an increase compared to January.
Although public spending continues to go slightly down, total construction spending for January and February combined is close to 9 percent higher than it was at the same time in 2013. Private non-residential construction is seeing the highest boost, but home and apartment construction growth is also stronger than last years’ during that time.
Still, Ken Simonson, chief economist of the Associated General Contractors (AGC), cautions that the figures “may not accurately reflect the impact of severe winter weather because the agency relies in part on models as well as field reports.” The association is especially concerned about public spending, which is likely to slip even more once the Highway Trust Fund is depleted in the summer. AGC has been urging Congress to speed up reforms “so construction workers don’t have to endure a summer break from work and pay.”
Read the full article on AGC’s website.