Total construction spending declined 0.7% in August to $1.78 trillion, the U.S. Census Bureau announced. Compared with August 2021, construction spending increased 8.5%.
Surging interest rates have started to hamper demand for single-family housing, according to Ken Simonson, chief economist for the Associated General Contractors of America.
“The construction market is in a transition that is likely to accelerate in the months ahead,” Simonson stated.
Residential construction spending slipped 1.0% from July, but was up 12.4% compared with August 2021. Nonresidential construction spending declined 0.4% month-over-month, but was up 4.7% compared with August 2021.
The full AGC report can be found here.
Read Next
