Construction Spending Slips In July As Sharp Downturn In Homebuilding Outweighs Advances In Private Nonresidential And Public Projects

Total construction spending decreased by 0.4 percent in July as spending on new houses and apartments tumbled, overshadowing a pickup in private nonresidential and public construction, according to an analysis the Associated General Contractors of America released today of federal spending data. Association officials said their newly released survey, conducted with Autodesk, showed labor shortages and supply chain problems are limiting their ability to complete projects, likely undermining total construction spending levels.

“There were gains for the month for nearly every private nonresidential category, along with a jump in highway and transportation work,” said Ken Simonson, the association’s chief economist. “But our survey found every type of contractor is facing challenges in finding enough qualified workers to meet the demand that is probably limiting total construction activity.”

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