Slow Summer for Construction Spending

Summer construction spending was generally down, reported Reed Construction Data.  Spending decreases in both June and July should be followed by a slight pickup in August based on an increase of 19,000 construction jobs.  Specifically, nonresidential spending also dropped in June and July and a small decline is predicted for the rest of the year.  Heavy construction increased in June and July, but is also expected to weaken during the remainder of 2010. Significant declines in overall spending are not expected, but the construction industry is likely to struggle until 2011.  A spending drop of over ten percent is predicted for 2010, while Standard & Poor's Ratings estimates that spending will decline 14 percent.  Construction is expected to slightly recover and stabilize in 2011, although no major growth is expected until 2012, when the employment market improves.  Since the construction market has had more delay than usual, the industry should expand faster than the rest of the general economy once the recovery is in progress. For more information and a construction spending forecast chart, please click here. For Standard & Poor's estimate from The Wall Street Journal, please click here. Detailed information on nonresidential building construction spending can be found here.  A breakdown of heavy construction spending can be found here.