Construction spending in January increased 1.8 percent to $1.369 trillion from December and 6.8 percent from January 2019, according to the Associated General Contractors of America. Association officials cautioned that January results may have been boosted by unusually mild winter weather, and that spending in future months could be impacted by uncertainty related to the coronavirus.
“Public spending on infrastructure, along with single-family housing, was exceptionally robust in January,” said Ken Simonson, the association’s chief economist.
Simonson noted that many construction materials, machines and parts are sourced, at least in part, from China and other countries where production and transportation have been disrupted by the virus. He added that, to date, no contractors have reported supply problems that are impacting their projects.
Public construction spending jumped 2.6 percent from December and 12.6 percent from a year earlier. The largest public category, highway and street construction, increased 11.7 percent. Public spending on transportation infrastructure—airports, transit, rail and ports—climbed 11.5 percent.
Private residential spending increased 2.1 percent for the month, led by a 2.8 percent increase in single-family homebuilding. Multifamily construction remained flat. Private nonresidential spending increased 0.8 percent for the month and 0.5 percent compared to January 2019.
Source: AGC
