U.S. construction spending increased in June and the prior month's data was revised higher, boosted by spending in both single-family and multifamily housing projects.
While there are several risks facing the U.S. economy and the construction sector in 2023, the most pressing concern is the ongoing battle over raising the debt ceiling, which could have significant repercussions for government spending and overall economic stability.
Thedata indicates greatly diminished pricing power among wholesalers and others, according to Associated Builders and Contractors Chief Economist Anirban Basu.
National nonresidential construction spending increased 0.4% in February, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $982.2 billion for the month.
Although high construction costs and elevated interest rates continue to hamper housing affordability, builders expressed cautious optimism in March as a lack of existing inventory is shifting demand to the new home market.
Associated General Contractors of America officials said a lack of clear guidance from officials in Washington is delaying expenditures on much-needed infrastructure and energy projects.
Commercial and institutional planning show improvements over the month, according to Sarah Martin, associate director of forecasting for Dodge Construction Network.
Recent employment and retail sales reports indicate that the economy is not slowing nearly as quickly as predicted, but the economy remains overheated, according to ABC Chief Economist Anirban Basu.