Total construction spending inched upward 0.2% in October to $1.6 trillion, the U.S. Census Bureau reported. Compared with October 2020, construction spending increased 8.6%.
Residential construction spending slipped for the second consecutive month, falling 0.5% from September. Residential construction spending increased year-over-year, however, growing 16.4% compared with October 2020. Total nonresidential construction spending rose 0.9% month-over-month and 2.0% year-over-year. Nonresidential construction spending has typically trailed residential construction spending since the pandemic.
âIt is encouraging to see such a broad-based pickup in spending on nonresidential projects in the latest month,â stated Ken Simonson, chief economist for the Associated General Contractors of America. âBut the construction industry still faces major challenges from workforce shortages and supply-chain bottlenecks.â
