Total construction spending declined 0.1% in May, a reflection of the workforce shortages and supply chain issues plaguing the housing builder market, according to an analysis by the Associated General Contractors of America.
Construction spending totaled $1.78 trillion in May, a 9.7% increase compared with May 2021.
“Contractors say demand remains strong for nonresidential projects but they are having trouble both getting materials on time and hiring enough workers,” stated Ken Simonson, AGC’s chief economist. “The industry’s unemployment rate was down to 3.8 percent in May, a sign of how scarce experienced workers are.”
Residential construction spending rose 0.2%, and nonresidential spending fell 0.4%, its third consecutive month of declines.
