AGC: Construction Spending Rises, Infrastructure Spending Lags

Construction spending increased for the fifth consecutive month in December, but an infrastructure bill is needed to address growing deficiencies in transportation, water and wastewater infrastructure, says the Associated General Contractors of America in an analysis of new government data.

“Construction spending ended the year on a high note, with gains over November levels for all major categories, but the annual totals for 2017 were much more mixed,” said Ken Simonson, the association’s chief economist. “For now, it appears residential construction will grow strongly again in 2018, while private nonresidential categories will be uneven, and public spending is at risk of recording a third consecutive decline.”