Construction spending across the US dipped by 0.3% in February 2024, vis-Ã -vis the month before; however, the dip is most probably going to be temporary and is not a sign of cooling demand.
This is as per the Associated General Contractors of America- AGC, which has gone on to evaluate the latest official figures.
The overall construction spending went on to diminish from January to February 2024 to an annual rate of almost $2.1 trillion; but all categories went on to post year-over-year gains, as per the AGC.
There happened to be monthly decreases for all types of non-residential projects, but that could as well have been down due to heavy rain as well as snow in the west during February 2024.
According to the chief economist of AGC, Ken Simonson, every spending segment surged from a year earlier, thereby suggesting the present downturns may go on to reflect short-term challenges like severe weather and not fading demand.
Construction spending, which by the way is not adjusted for inflation, amounted to $2.1 trillion at a seasonally adjusted yearly rate in February 2024. That figure is 0.3% less than the downwardly revised January rate, but 10.7% above the February 2023 level.
Spending as far as private non-residential construction is concerned dipped 0.9% in February 2024; however, it did see a rise of 12.6% from February last year. Manufacturing construction slipped 0.6% for the month; however, it jumped 31.8% year over year. Commercial construction also went on to drop 1.7% in February 2024, but went up 0.9% over 12 months.
It is well to be noted that public construction spending went on to decrease 1.2% for the month; however, it did soar 16.8% from 2023. The largest public segment, which happens to be highway and street construction, saw a decrease of 1.6% in February 2024; however, it was up 18.5% from February 2023. Public educational spending went down 1.8% from January; however, it did climb 15.4% year over year.
Spending when it comes to private residential construction surged by 0.7% for the month and 6.3% year over year. Single-family construction went on to climb 1.4% from January, which happened to be the tenth straight increase. Spending when it comes to multifamily projects dipped 0.2% in February 2024; however, it did remain 6.1% higher than in 2023.
Although it hailed the year-on-year progress in construction as good news, AGC went on to warn that many firms go on to struggle to find ample workers to hire.
AGC has urged federal, state, as well as local officials to go ahead and boost funding for construction education and training programs in order to encourage many more individuals to seek careers in construction.
The Chief Executive of AGC, Jeffrey D. Shoaf, said that it is in the public interest to ensure there happen to be enough people available so as to keep pace with the growing investments in infrastructure, manufacturing, and clean energy.
He added that investing when it comes to new construction education as well as training programs and also creating a workable legal immigration process for the skilled construction workers will go on to help get key projects finished and thereby offer another path to middle class prosperity for many of the workers.
