Total construction spending increased by 0.9 percent in December and 13.9 percent year-over-year, as gains in residential and public segments offset mixed results among private nonresidential markets, according to an analysis of federal spending data the Associated General Contractors of America released today. Association officials cautioned that higher interest rates, labor shortages and regulatory delays could impact future construction spending levels despite overall strength in the market.
“Construction spending rose across the board in 2023 despite higher interest costs, shortages of workers, and delays in awarding federal money for infrastructure,” said Ken Simonson, the association’s chief economist. “These challenges remain in early 2024 but the industry is poised for further growth overall.”
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