Construction spending increased in January to $1.68 trillion, up 8.2 percent over the same period in 2021, according to the Associated General Contractors of America. Compared to December, spending increased 1.3 percent.
Gains were strong in private nonresidential and residential construction, but mixed for public spending, according to the group.
“Private nonresidential construction, especially for manufacturing plants, has rebounded sharply in recent months, while demand for housing remains strong,” said Ken Simonson, AGC chief economist. “But public projects have yet to grow consistently.”
Private residential construction spending rose 1.3 percent in January from a month prior and 13.4 percent from January 2021, while private nonresidential construction spending increased 1.8 percent from December to January and 7.3 percent from January 2021. In contrast, public construction spending rose 0.6 percent for the month but slipped 1.3 percent from the year-ago level.
Among residential segments, single-family construction added 1.2 percent over the December total and 15.4 percent year-over-year. Multifamily construction inched down less than 0.1 percent in January but rose 4.8 percent from a year earlier. Spending on improvements to existing owner-occupied houses increased 1.8 percent for the month and 13.7 percent year-over-year.
A surge in manufacturing construction, which gained 8.5 percent for the month and 31.2 percent year-over-year, accounted for the bulk of the private nonresidential pickup. In addition, the largest private nonresidential segment, power construction, rose 2.7 percent for the month but trailed the January 2021 rate by 1.4 percent. The next-largest segment, commercial construction, declined 0.5 percent in January but jumped 18.0 percent year-over-year, with year-over-year gains in each component: warehouses (up 22.4 percent), retail categories (up 15.2 percent), and farm (up 4.4 percent).
The largest public segments showed diverse results. Highway and street construction edged down 0.1 percent from December but rose 5.2 percent compared to January 2021. Educational construction was unchanged for the month and skidded 9.9 percent year-over-year. Transportation construction spending climbed 1.6 percent in January but only 0.1 percent year-over year.
Source: AGC
