Total construction spending slipped from December to January amid widespread severe weather, but outlays climbed strongly compared to January 2023, with year-over-year gains in every category, according to an analysis of a new government report that the Associated General Contractors of America released today. Association officials noted, however, that some construction segments appear to be impacted by broader economic conditions.
“The dip in January is more likely due to bad weather than to weakening demand overall,” said Ken Simonson, the association’s chief economist. “But high financing costs and falling rents are dragging down income-dependent sectors like warehouse and retail construction, while single-family homebuilding and manufacturing remain solid.”
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