Construction spending declined between July and August to an annualized rate of $837 billion, but increased compared to August 2011, according to an analysis of new federal data by AGC.
Association officials noted that growing demand for residential, lodging and education construction in particular offset drops in public construction spending.
“The construction industry has definitely lost some of the momentum it had earlier this year,” said Stephen E. Sandherr, AGC’s chief executive officer, noting that construction spending has now declined for two months in a row. “With the exception of the lodging sector, many businesses are retreating from the levels of construction spending we saw in the spring and early summer.”
Sandherr noted that total construction spending declined 0.6 percent for the month but was up 6.5 percent from August 2011 to August 2012. Private residential spending continues to strengthen, increasing by 0.9 percent compared to July and up 17.8 percent during the past 12 months. Private nonresidential construction, however, declined by 1.7 percent for the month, but remains up 7.2 percent for the year. Public construction slid further, declining 0.8 percent in August and 3.5 percent year-over-year.