New York -- Data released Monday by the Associated General Contractors of America revealed that construction spending declined between July and August to an annualized rate of $837 billion, but increased compared with August 2011 driven largely by growing demand for residential, lodging and education construction.
“The construction industry has definitely lost some of the momentum it had earlier this year,” said Stephen E. Sandherr, the association’s CEO, noting that construction spending has now declined for two months in a row. “With the exception of the lodging sector, many businesses are retreating from the levels of construction spending we saw in the spring and early summer.”
Total construction spending declined 0.6% for the month but was up 6.5% from August 2011 to August 2012. Private residential spending continues to strengthen, increasing by 0.9% compared with July and up 17.8% during the past 12 months. Private non-residential construction, however, declined by 1.7% for the month, but remains up 7.2% for the year. Public construction slid further, declining 0.8% in August and 3.5% year-over-year.