Construction spending sinks to 10-year low in July

Total construction spending declined to a 10–year low of $805 billion in July, as investments in construction projects dropped 1.0 percent from a downwardly revised June total, the Associated General Contractors of America said today [Sept. 1] in an analysis of new Census Bureau data. Association officials noted that the new figures show depressed private sector activity, and local and state budget cuts are offsetting stimulus–funded construction spending.

“While the stimulus is funding some vital infrastructure projects, the private sector is too cautious and state and local governments are too cash–strapped, to help,” said Ken Simonson, the association’s chief economist. “As a result, overall construction spending is at its lowest level in a decade and hundreds of thousands of construction workers are unemployed,” according to a Sept. 1 AGC of America release.