Homebuilding Gains Offset Public Stall

Jan. 2, 2024
November spending on single-family residential rose 2.9% compared to October.

The Associated General Contractors says its analysis of November construction spending compared to October shows that a 2.2% drop in public construction spending was offset by a 2.9% increase in single-family residential construction spending. Total construction spending rose 0.4% for compared to the previous month, to $2.05 trillion.

“Private construction spending is showing renewed vigor in homebuilding and selected private nonresidential categories, while developer-financed spending languishes,” said Ken Simonson, chief economist, in a statement. “Unfortunately, public construction spending appears to have stalled.”

Single-family spending registered its seventh straight month of growth. Multifamily edged up 0.1%, giving residential construction an overall boost of 1.1 percent.

Read also: 2024 Construction Forecast Holds Steady

Spending on private nonresidential construction rose 0.2 percent in November, the fifth consecutive monthly increase. The largest segment, manufacturing construction, climbed 0.5 percent. Among other large private categories, commercial construction—comprising warehouse, retail, and farm projects—declined 0.5 percent, while investment in power, oil, and gas projects rose 0.8 percent. Spending on offices and data centers, as well as private health care facilities, was virtually unchanged.

Public construction spending slumped 2.2 percent in November despite a minimal 0.1 percent increase in the largest category: highway and street construction. Spending on educational structures slipped 0.3 percent. Spending on transportation facilities fell 1.0 percent. Spending on other infrastructure categories tumbled even more: 1.6 percent for sewage and waste disposal, 1.4 percent for water supply, and 4.4 percent for conservation and development.

About the Author

Rod Sutton

I have served as the editorial lead of Construction Equipment magazine and ConstructionEquipment.com since 2001. 

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