91视频

By Ethan Duran
91视频 Newswires

Construction spending across the nation was $2.1 trillion in August, a 0.1 percent decline from July to August, according to an analysis by the Associated General Contractors.

AGC officials earlier this week said the slight decline was due to stalled federally funded construction projects and a slowed investment in housing during a glut in newly completed buildings.

鈥淎lthough the federal government has announced thousands of project awards in the past three years, most of the money has yet to turn into construction contracts, let alone work under way,鈥� said Ken Simonson, chief economist at AGC, in a statement.

鈥淭here is still great potential for infrastructure and power projects, but the timing remains uncertain. Meanwhile, single-family homebuilding should pick up as mortgage rates decline, but multifamily construction is likely to shrink until the current glut of apartments is absorbed,鈥� he added.

The construction spending figure in August was 0.1 percent below the rate in July, but 4.1 percent more than where it was in August 2023, officials noted.

Homebuilding down in August but still up year-over-year

Private residential spending fell 0.3 percent in August, but was up 2.7 percent compared to last year, according to the analysis. Single-family projects fell 1.5 percent that month but saw a slight rise of 0.8 percent year-over-year, the analysis showed.

Multifamily construction fell again for the eighth month in a row, down by 0.4 percent and falling 7.5 percent from August 2023 levels.

Nonresidential spending inching downward, commercial takes a plunge over the year

Private nonresidential spending inched down by 0.1 percent for the month, but gained 3.6 percent year-over-year, the analysis showed. Manufacturing construction saw a 0.2 percent increase for the month. Being the largest segment in nonresidential spending, manufacturing surged 18.1 percent year-over-year.

Commercial construction spending, which includes warehouse, retail and farm projects, fell by 0.4 percent for the month and dropped 14.8 percent compared to last year, the analysis showed.

Power construction had a 0.3 percent decline for the month but rose 7.6 percent year-over-year, officials said.

Public sector a mixed bag

Overall public construction spending was up 0.3 percent for the month, but its top three segments had mixed results, according to the analysis. Highway and street construction increased by 1.1 percent, education construction remained flat and transportation spending fell by 0.2 percent. However, total public construction spending increased 7.8 percent year-over-year.

AGC lobbies federal government on environmental permitting, Buy America measures

AGC officials said the federal government 鈥渉as done a good job in announcing projects that will receive construction funding.鈥� However, confusion over Buy America requirements and delays with environmental permitting were keeping projects on from starting, officials added. AGC urged the Biden Administration to speed up permit reviews and give federal agencies more flexibility issuing Buy America waivers.

鈥淐onstruction spending levels would likely be higher if the federal government could get out of its own way and allow projects to move forward,鈥� said Jeffrey D. Shoaf, the association’s chief executive officer, in a statement. 鈥淧romising money is good, allowing projects to move forward is even better.鈥�