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Construction spending up in March

By: Justin Carinci//May 4, 2010//

Construction spending up in March

Justin Carinci//May 4, 2010//

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Construction spending grew in March thanks largely to public projects. According to U.S. Department of Commerce numbers, public building project spending rose 2.3 percent.

That was enough to create a 0.2 percent gain in total construction spending, offsetting a 0.9 percent drop in private-sector projects.

It will take private-sector gains to turn the construction economy around, said Brian Turmail, spokesman for the Associated General Contractors of America. “Ultimately, what’s next is a return of private-sector demand,” he said.

“Our concern is that it’s not going to come until sometime after a bulk of the stimulus funding runs out,” he said.

With the economy still weak, now is the perfect time to invest in more public works projects, Turmail said.

“Construction prices are particularly low, so taxpayers get a better deal in investments the government is going to have to make at some point anyway,” he said.

“From our point of view, if the administration and the folks in Washington are committed to helping rebuild our economy and at the same time addressing jobs, the best way to do that is to make these kinds of investments in our infrastructure.”



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