Residential Leads Construction Spending in August

Construction spending rose 1.4 percent in August primarily due to a robust residential construction sector, said the Associated General Contractors of America. AGC cautioned that without federal support, nonresidential construction will continue to stagnate.

“The August spending report shows a stark divide between housing and nonresidential markets that appears likely to widen over the coming months,” said AGC Chief Economist Ken Simonson. “With steadily rising business closures and worker layoffs, and growing budget gaps for state and local governments, project cancellations are likely to mount and new starts will dwindle.”