Construction Spending in October Rises as Monthly Increase in Public Sector Demand Outpaces Drop in Private Non-residential Construction

Construction spending increased in October amid growing public-sector demand for construction and continued modest growth in residential, according to an analysis by AGC.  Association officials said the new spending figures underscore the need for measures to increase the supply of qualified construction workers as firms worry about growing labor shortages. "Today's data shows that construction growth remains volatile," said Ken Simonson, the association's chief economist. "While overall construction spending jumped by more than one percent in October, the gain followed two months of stagnation. Public construction was the fastest-growing segment for the month but the slowest-growing over the past year and for the first 10 months of 2014 combined. Conversely, private nonresidential construction inched down from September to October but has risen at double-digit rates--11 percent--for the combined January through October period. And private residential construction continues to grow very modestly, with multifamily construction taking the lead on an annual basis." Read full press release here.