Construction spending dipped in May but posted strong, broad-based gains for the first five months of 2016 compared to the same period in 2015, according to an analysis by the Associated General Contractors of America. Association officials said the construction spending gains come amid signs that contractors are having an increasingly hard time finding qualified workers to hire.
“Mild winter weather in many regions early in 2016, followed by extreme rains in some locations in May, has probably distorted monthly spending patterns but shouldn’t mask the robust widespread growth in demand for construction so far this year,” said Ken Simonson, the association's chief economist. “It appears there will be plenty of activity in the remainder of 2016—if contractors can find the workers they need.”
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