AGC: Construction Spending up 5.2 Percent Through July

Construction spending increased 0.1 percent from June to July and 5.2 percent for seven months of 2018 combined, with year-to-date growth for most major public and private categories, according to an analysis of new government data by the Associated General Contractors of America. Association officials said sustained growth will depend in part on contractors’ ability to find increasingly scarce craft workers and urged public officials to step up support for career and technical education to prepare more students for construction careers.

“It is striking how balanced the growth in construction spending has been so far this year,” said Ken Simonson, the association’s chief economist. “Spending totals for the first seven months of 2018 combined nearly match those for the same period of 2017. Contractors are optimistic that demand for projects will continue, but many report that workforce shortages are leading to longer construction schedules and higher costs.”