CONSTRUCTION SPENDING HITS 17-MONTH HIGH IN NOVEMBER WITH MONTHLY GAINS IN ALL SEGMENTS BUT PUBLIC SPENDING DOWN 5.3 PERCENT COMPARED TO LAST YEAR
Date: January 3, 2012
Both Single- and Multifamily Homebuilding Improve from October and Year Ago; Private Nonresidential Increases from November 2010 are Widespread; Most Public Categories Drop from Year-Earlier Levels
Construction spending totaled $807 billion in November 2011, the highest level since June 2010, as homebuilding, private nonresidential construction and public construction all increased compared to October, the Associated General Contractors of America reported today in an analysis of new Census Bureau data. Association officials cautioned, however, that public spending will drop even further in 2012 because of delays in enacting needed infrastructure bills and planned cuts to many federal construction programs.
“Several segments of construction appear to be climbing out of a hole,” said the association’s chief economist, Ken Simonson. “The new year should reinforce recent year-over-year gains in apartment, power, manufacturing and private transportation construction. But November’s upturns in single-family homebuilding and public construction may not be sustainable.”