Construction spending continues year-over-year growth, led by multifamily segment
Construction spending in July maintained consistent year-over-year growth despite a pullback from the June peak, according to an analysis of new federal data released today by the Associated General Contractors of America.
“The July spending numbers send a very mixed message,” said Ken Simonson, the association’s chief economist, in a Sept. 4 release. “Construction of new homes, apartments and most private nonresidential structures appears to be driving gains in construction activity even as the public sector continues to drag on broader sector growth.”
Simonson noted that total construction spending declined 0.9 percent for the month but climbed 9.3 percent from July 2011 to July 2012, as well as for the first seven months of 2012 combined, compared with the same period in 2011.
Private nonresidential construction slumped 0.9 percent for the month but grew 12 percent year-over-year. Public construction slid further, edging down 0.4 percent in July and 0.7 percent year-over-year. New multifamily construction climbed 2.8 percent in July and 45 percent from a year earlier, according to the AGC analysis.