Shop NRCA has the industry resources you need
News April 6, 2021

Construction spending fell in February

Construction spending fell 1.3% from January to February and is down 6.1% compared with February 2020, according to www.abc.org.

For public construction, spending decreased 1.8% for the month and 0.9% year-to-date. Private nonresidential spending fell 1% from January to February and is down 9.7% year-to-date.

Associated Builders and Contractors Chief Economist Anirban Basu said although downward pressure on nonresidential construction activity continues, the future is looking brighter.

“America is about to experience a massive resurgence in economic growth as vaccinations proceed,” Basu said. “Many ABC members report that backlog has already been climbing as projects that had been postponed earlier in the crisis come back to life. While some residual weakness may persist in the next few months, nonresidential construction spending is poised to stabilize during the summer and enter 2022 with substantial momentum, though some private construction segments will continue to lag.

“Consequently, the nature of the challenges facing contractors will shift dramatically during the months ahead,” Basu continued. “While many contractors have indicated that demand for construction services has been among their leading sources of concern during the pandemic, by the end of this year, the greatest challenge for many will be securing a sufficient workforce with which to compete for and complete projects. This will likely be even more of an issue in 2022 and 2023 as the pace of economic recovery progresses.”

Advertisement

Subscribe for Updates Join 25,000+ roofing professionals following NRCA

Subscribe to NRCA