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.”
The Census Bureau said Monday that construction spending during August 2017 was estimated at a seasonally adjusted annual rate of $1,218.3 billion, 0.5% percent above the revised July estimate of $1,212.3 billion. In turn, the August figure is up 2.5% from the August 2016 estimate of $1,189.1 billion. During the first eight months of this year, construction spending amounted to $806.2 billion, up 4.7% from the $769.9 billion for the year-ago period.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
