Construction spending in October reached the highest level in nearly eight years with growth in all major categories, according to an analysis by the Associated General Contractors of America. Association officials, however, noted that demand for construction appears to be growing faster than the supply of qualified workers available to fill positions.
“The October data was positive across the board, with robust growth for the month and year in residential, private nonresidential and public construction,” said AGC chief economist Ken Simonson. “The pause that had appeared in private and public nonresidential spending for several months seems to have ended.”
Construction spending in October totaled $1.107 trillion, 1 percent higher than September and 13 percent higher than in October 2014, Simonson said, adding that the total was the highest since December 2007.
Private residential spending increased 1 percent for the month and 16.6 percent over 12 months. Simonson said demand for multifamily residential construction grew at a robust rate, 1.4 percent for the month and 27.9 percent year over year, while single-family spending jumped 1.6 percent and 11.4 percent respectively.
“The breadth of the expansion and the large number of categories with double-digit increases suggests that construction will continue growing well into 2016,” added Simonson.