Construction Spending Hits Three-Year High in SeptemberNovember 2nd, 2012 | Category: Industry News
Construction spending rose at an annualized rate of $852billion during September, a nearly three year high as spending on houses, apartments and private nonresidential projects offset declining public construction, according to an Associated General Contractors of America. Association officials said they expect both the public and private sectors will continue to show growth despite Hurricane Sandy’s presence.
“It is heartening to see the growth in total spending, but the progress remains fragile and fragmentary,” says Ken Simonson, the association’s chief economist. “In the wake of the massive losses from this week’s storm, many construction priorities will be reordered, but overall private and public spending patterns are likely to stick unless federal and state lawmakers devote more funds to construction.”
According to Simonson total construction spending rose 0.6 percent for the month and 7.8 percent from September 2011 to September 2012. This total is the highest level since October 2009.