Status and Forecast

Staff | September 28, 2010

Public Construction Spending

Public construction spending has increased 23 percent since the housing market collapsed in February 2006. A further 15-percent gain is projected by the end of 2009. The usual end of cycle spending surge was fueled by rapid growth in tax receipts and budget balance in 2004–06 and still-above-average budget balances currently. Rising investment returns and donations also contributed. According to Reed Construction Data, public construction starts have recently slowed, especially for highways due to federal funding delays.