Total construction spending increased in November compared to levels in October and a year earlier, as gains in private residential and nonresidential projects outweighed decreases in public outlays, according to a new analysis of federal construction spending data the Associated General Contractors of America released today. Officials noted that public sector investments were down in part because Congress has failed to provide funding so far for the Bipartisan Infrastructure bill enacted last year.
“Private nonresidential spending appears to be on a solid upswing, with five consecutive months of growth, but public outlays for construction remain erratic,” said Ken Simonson, the association’s chief economist. “The public side isn’t likely to post steady gains until funds from the new infrastructure law become available and turn into actual projects.”
Construction spending in November totaled $1.63 trillion at a seasonally adjusted annual rate, 0.4% above the October rate and 9.3% higher than in November 2020. Year-to-date spending in the first 11 months of 2021 combined increased 7.9% from the total for January-November 2020.
Private construction spending rose 0.6% in November from the October total and 12.5% from November 2020. In contrast, public construction spending slipped 0.2% for the month and 0.9% year-over-year.
There were gains in both residential and nonresidential private construction. Spending on new single- and multifamily residential projects, along with additions and renovations to existing houses, increased 0.9% for the month and 16.3% from a year earlier. Private nonresidential spending edged up 0.1% from October and 6.7% from November 2020. The largest private nonresidential segment, power construction, rose 0.1% for the month and 7.5% year-over-year. Among other large segments, commercial construction--comprising warehouse, retail, and farm structures--dipped 0.1% in November but jumped 15.1% year-over-year. Manufacturing construction increased for the 11th month in a row, by 0.9%, putting the total 22.4% above the year-earlier level.
The largest public categories posted mixed results. Highway and street construction slid 0.8% from October but rose 0.2% compared to November 2020. Educational construction climbed 0.3% for the month but declined 6.3% year-over-year. Transportation spending fell 0.5% in November but rose 0.7% from the year-earlier total.
Association officials said that public construction spending likely suffered from the fact Congress has not yet allocated the additional funds that were authorized in the Bipartisan Infrastructure bill that the President signed into law last year. As a result, the economic benefits from that measure will be delayed for at least a few months until Congress passes a new spending bill.
“Construction demand is definitely being impacted by Congress’ failure to include the funding increases it promised as part of the Bipartisan Infrastructure bill,” said Stephen E. Sandherr, the association’s chief executive officer.
Related Stories
Market Data | Apr 30, 2018
Outlook mixed for renewable energy installations in Middle East and Africa region
Several major MEA countries are actively supporting the growth of renewable energy.
Market Data | Apr 12, 2018
Construction costs climb in March as wide range of input costs jump
Association officials urge Trump administration, congress to fund infrastructure adequately as better way to stimulate demand than tariffs that impose steep costs on contractors and project owners.
Market Data | Apr 9, 2018
Construction employers add 228,000 jobs over the year despite dip in March
Average hourly earnings increase to $29.43 in construction, topping private sector by nearly 10%; Association officials urge updating and better funding programs to train workers for construction jobs.
Market Data | Apr 4, 2018
Construction employment increases in 257 metro areas between February 2017 & 2018 as construction firms continue to expand amid strong demand
Riverside-San Bernardino-Ontario, Calif. and Merced, Calif. experience largest year-over-year gains; Baton Rouge, La. and Auburn-Opelika, Ala. have biggest annual declines in construction employment.
Market Data | Apr 2, 2018
Construction spending in February inches up from January
Association officials urge federal, state and local officials to work quickly to put recently enacted funding increases to work to improve aging and over-burdened infrastructure, offset public-sector spending drops.
Market Data | Mar 29, 2018
AIA and the University of Minnesota partner to develop Guides for Equitable Practice
The Guides for Equitable Practice will be developed and implemented in three phase.
Market Data | Mar 22, 2018
Architecture billings continue to hold positive in 2018
Billings particularly strong at firms in the West and Midwest regions.
Market Data | Mar 21, 2018
Construction employment increases in 248 metro areas as new metal tariffs threaten future sector job gains
Riverside-San Bernardino-Ontario, Calif., and Merced, Calif., experience largest year-over-year gains; Baton Rouge, La., and Auburn-Opelika, Ala., have biggest annual declines in construction employment.
Market Data | Mar 19, 2018
ABC's Construction Backlog Indicator hits a new high: 2018 poised to be a very strong year for construction spending
CBI is up by 1.36 months, or 16.3%, on a year-over-year basis.
Market Data | Mar 15, 2018
ABC: Construction materials prices continue to expand briskly in February
Compared to February 2017, prices are up 5.2%.