WASHINGTON -- Construction spending shrank again in May, dropping 8% from a year earlier, although homebuilding and stimulus-funded public works increased from year-ago levels, according to an analysis of new Census Bureau data by the Associated General Contractors of America.
“Stimulus has made a difference, but Congress needs to provide long-term funding for transportation and water projects to assure further economic growth,” said Ken Simonson, chief economist for the construction trade association.
“Private nonresidential construction sagged 25% from May 2009 to May 2010, while public construction edged down 3%, and private residential construction rose 11%,” Simonson noted. “Federal stimulus funds helped keep public construction afloat and buoyed single-family construction.”
Read Associated General Contractors of America's press release.
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