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Construction Spending Slips in January as Public Investments in Infrastructure "Tumbled" While Private Construction Demand Continues to Grow Solidly

March 1, 2017

Construction spending slipped from December to January but increased modestly from a year ago, as private construction grew solidly but public infrastructure outlays tumbled, according to an analysis by the Associated General Contractors of America. Association officials said the January data indicates the need for new public investments in infrastructure along the lines of the trillion dollar proposal President Trump outlined during his Congressional address last night.

“These numbers suggest that demand for residential and private nonresidential structures remain strong but all levels of government are struggling to fund needed projects,” said Ken Simonson, the association's chief economist. “It appears that homebuilding, office and power construction will continue to grow through 2017, while manufacturing, highway and other transportation construction are likely to hold down overall growth.”

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