Construction spending decreased 0.2 percent from December to January with mixed results across residential, nonresidential, and public segments, according to an analysis of a new government report that the Associated General Contractors of America released today. Association officials cautioned that spending on new construction projects could be negatively impacted by proposed new tariffs on a range of goods from Canada, Mexico and China that are likely to make projects more costly.
“Construction spending growth has been slowing under pressure from high interest costs and now the prospect of new waves of tariffs,” said, Ken Simonson, chief economist of the Associated General Contractors of America. “There have already been notable cancellations and postponements for major manufacturing plants and the impacts of new tariffs are likely to lead to more delays and cancellations.”
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