Analysis of the latest figures by the Associated General Contractors of America (AGC) showed that spending stalled in some once fast-growing categories.
Construction spending in November totalled US$1.122 trillion (£761bn) at a seasonally adjusted annual rate. This was 0.4% lower than the October total and 10.5% higher than in November 2014, said AGC chief economist Ken Simonson. But the November total was only 0.5% higher than in August, indicating construction has levelled off recently, he added.
Association officials said that the new spending figures demonstrate a lot of uncertainty within the private sector about the need for new projects while state and local government officials are worried about budget constraints.
“The November data show divergent trends for residential, private non-residential and public construction,” said Simonson. “Compared to October levels, spending dipped overall but climbed for homebuilding, school and office construction. Previously fast-growing categories such as multi-family, manufacturing and lodging construction have stalled for the past two to four months. Yet nearly every type of construction has outperformed its 2014 pace through the first 11 months of 2015.”
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