Construction spending slipped in March from upwardly revised February totals but increased modestly from a year earlier, according to an analysis by AGC of America. Association officials cautioned, however, that those spending gains could be at risk if Congress and the Obama administration fail to address highway funding shortfalls that threaten to undermine the sector’s recovery.
“The first quarter as a whole was positive for all major categories of construction despite a weak March for residential and public construction spending,” said Ken Simonson, the association's chief economist. “Current indications suggest private nonresidential construction and multifamily housing will continue to grow throughout the year. But funding for infrastructure is in jeopardy, which threatens to hold down public construction.”
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