‘Uneven’ Construction Spending in the Forecast

AGC’s Simonson says it’s encouraging that residential construction rebounded for August.

WASHINGTON, DC—The topline construction numbers issued Monday point to a rebound in August after a July decline that was revised further downward with the release of the August figures. It’s where the spending didn’t occur that’s worrisome, says the Associated General Contractors of America.

“It is encouraging that spending rebounded in August for many types of residential, private nonresidential and public projects,” says Ken Simonson, chief economist with AGC. “However, the August numbers also show that public and private nonresidential construction are continuing to slow or fall below last year’s levels. Spending patterns are likely to be uneven through next year, as previously hot categories cool off but others revive.”