Construction Spending in July Reaches Highest Level Since Late 2008

All major categories of construction spending increased in July and total construction reached the highest level since December 2008, according to an analysis by AGC of America. Association officials welcomed the robust spending figures, but cautioned that growing demand will put new pressure on an already tight labor market. "It is encouraging to see signs of a broad-based recovery in private construction along with a recovery - at least for now - in public construction investment," said Ken Simonson, the association's chief economist. "Private nonresidential construction should remain strong through the rest of 2014 and beyond, while residential spending is likely to keep growing, though at a more moderate pace. However, funding is still inadequate for needed public infrastructure improvements." Read the full release here.