Total construction spending increased by 0.2 percent in November, dragged down by a lack of new infrastructure projects along with a continuing slide in homebuilding, according to an analysis the Associated General Contractors of America released on federal spending data. Association officials urged leaders in Washington to speed the release of funds authorized by infrastructure laws passed in 2021 and 2022 and address regulatory delays associated with those projects.
Breaking down the data
Construction spending, not adjusted for inflation, totaled $1.808 trillion at a seasonally adjusted annual rate in November, 0.2 percent above the October rate and 8.5 percent above the November 2021 rate. Spending on private residential construction declined for the sixth consecutive month in November, by 0.5 percent. Spending on private nonresidential construction rose 1.7 percent in November, while public construction investment edged down 0.1 percent.
What the experts say
"A variety of private nonresidential categories, as well as multifamily projects, posted solid spending gains in November," says AGC Chief Economist Ken Simonson. "Many of these segments should continue to do well in 2023. But the timing of public construction, while well-funded, remains unclear."
