Construction spending declined 1.1% month-over-month in June to $1.76 trillion, as spending on new housing and nonresidential construction fell, according to an analysis by the Associated General Contractors of America.
Compared with June 2021, however, construction spending increased 8.3%.
“Strong demand for construction is being offset by rising materials prices and labor shortages,” stated AGC CEO Stephen E. Sandherr. “As firms stretch schedules and boost costs to cover rising materials prices, it is getting harder for public and private owners to proceed with some planned projects.”
Residential construction spending declined 1.6% from May, but increased 15.4% compared with June 2021. Nonresidential construction spending declined 0.5% from May, but increased 1.2% compared with June 2021.
The full AGC report can be found here.