Construction Spending Declines for Fourth Consecutive Month
Despite growth in some areas, June was another sluggish month for the construction industry as a whole.
Construction spending declined once more in June, according to the latest data from the United states of america Census Bureau. The drop marks the fourth sequent month of decline in overall structure spending.
Officials with the Associated General Contractors of America (AGC) warned in a news release that this drop-off will probably persist as the coronavirus pandemic stretches on.
"Regrettably, the overall downward trend in spending is likely to continue and to spread to more project types as work that began before the pandemic hit finishes upward," said Ken Simonson, the AGC's chief economist.
The downturn continued despite signs of slightly stronger performance in specific sectors. Manufacturing and office construction spending was really upward on the month, with those categories increasing past 1.7 percent and 0.3 percent respectively. New multifamily spending saw considerable growth, ascent three percent from May.
But those small-scale gains were not almost plenty to offset the sharp declines in other parts of the manufacture. Single-family homebuilding dropped 3.6 percent from the calendar month earlier, and overall private residential construction brutal 1.5 percent.
Individual residential improvements, a category that includes spending on remodeling, major replacements, and additions to owner-occupied housing units, dipped 0.4 percent in June.
The AGC called on the federal government to increase investment in infrastructure and other structure projects,
"Instead of letting people languish in unemployment, Washington can put people back to work simply past boosting investments in needed infrastructure and other construction projects," said AGC CEO Stephen Sandherr.
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