Total construction spending dipped from February to March with declines in private nonresidential and residential projects that offset a rebound in public construction, according to an analysis of a new government report that the Associated General Contractors of America released today. Association officials noted, however, that contractors continue to report robust backlogs and few cancellations, suggesting that the slowdown in spending may be due to a lack of workers, not slumping demand.
“Private nonresidential categories showed varied patterns, while multifamily construction continued to slip from record levels in 2023,” said Ken Simonson, the association’s chief economist. “Meanwhile, public construction posted healthy gains for the month and year-over-year. These diverse trends suggest there is still strong demand for projects, but a dearth of workers may be forcing a slowdown in spending.”
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