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Source : Wikimedia Commons
November 2, 2021
Author : Alex Bustillos
Both residential and nonresidential construction declined, AGC reports.
“Spending on projects has been slowed by shortages of workers and materials, as well as extended or uncertain delivery times,” Ken Simonson, AGC’s chief economist, said.
“The extreme rise in materials costs is likely to mean some infrastructure projects will no longer be affordable without additional funding,” he added.
AGC’s analysis worked from data released by the federal government, their press release notes.
Total construction spending for the month of September reached $1.57 trillion at a seasonally adjusted rate, which marks a 0.5 percent decline from August. However, overall in the first nine months of 2021 construction spending increased 7.1 percent compared to the same period in 2020.
Residential construction dropped 0.4 percent between August and September but was still 24.5 percent higher year-to-date.
However, “most infrastructure categories posted significant year-to-date declines.” Highway and street construction, the largest segment of public infrastructure, was 1.3 percent lower in the first nine months of 2021 than it was in 2020. Public transportation spending dropped 6.8 percent as well.
Additionally, electric power and oil and gas project spending declined 2.5 percent year-to-date while education construction dropped a whopping 10.1 percent. Declines were also seen in commercial construction. While warehouse projects spiked with a 12.0 percent increase, the scales were tipped towards an overall decline from a 13.2 percent drop in retail construction spending.
AGC officials said the overwhelming drop in infrastructure spending highlights the importance of Congress enacting a bipartisan infrastructure bill.
Photo via Wikimedia Commons.