Construction Spending Reached Seven-Year High in August

Arlington, VA, October 2, 2015—Construction spending in August reached $1.086 trillion, a seven-year high, and climbed at the fastest rate since 2006, according to an analysis by the Associated General Contractors of America.

Association officials noted that growing demand for construction was likely to add to the challenges many firms are having finding qualified workers.

There were widespread monthly and year-over-year gains in August for all major construction categories—private nonresidential, residential and public.

Construction spending in August was 0.7% higher than the July total and 13.7% higher than in August 2014.

The total was the highest since May 2008 and the year-over-year growth rate was the strongest since March 2006, indicating a faster pace of construction spending overall.

There was strong growth in manufacturing, lodging and apartment construction all year, and more recently, office, health care, highway and educational structures have rebounded as well.

Association officials note that, according to a survey the group released in September, 86% of firms reported they are having a hard time finding qualified workers to fill available positions.

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