Construction spending edged up 0.2% in June as increases in private nonresidential construction outweighed continuing declines in private residential and public construction spending, the Associated General Contractors of America reported earlier this week in an analysis of new Census Bureau data. The construction trade association’s chief economist, Ken Simonson, predicted further imbalances in spending, with further cuts in public spending likely to offset most or all of the gains in private investment.
“Private nonresidential construction is rebounding, thanks to renewed investments in power, manufacturing and warehousing and distribution facilities,” Simonson said. “A small rise in homebuilding also helped overall spending rise for the third month in a row, although decreases in multifamily and residential improvements pulled down total private residential construction by 0.3%. Meanwhile, public construction shrank 9.6% since June 2010, and appears headed down further.”