ARLINGTON, VA — At its highest level since June 2010, construction spending reached $807 billion in November 2011. According to the Associated General Contractors of America (AGC), homebuilding, private nonresidential construction and public construction all saw an increase.
“Several segments of construction appear to be climbing out of a hole,” said AGC’s chief economist, Ken Simonson. “The new year should reinforce recent year-over-year gains in apartment, power, manufacturing and private transportation construction. But November’s upturns in single-family homebuilding and public construction may not be sustainable.”
AGC notes that even as private sector demand returns, the public sector could still be under pressure with cuts and delays to federal funding for infrastructure projects, including water, aviation and surface transportation.
“If lawmakers don’t act swiftly, they risk undermining a long-awaited recovery for the construction industry that could put tens of thousands of people back to work,” said Stephen E. Sandherr, AGC’s chief executive officer.
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