Construction spending decreased 0.5 percent from February to March with a pullback in all of the largest nonresidential public and private project types, according to an analysis by the Associated General Contractors of America of a new government report. Association officials noted that the decline in construction activity comes amid growing uncertainty about the impacts tariffs and trade disputes would have on materials prices and overall demand for new projects.
“Construction spending retreated in March, as media reports and corporate announcements suggest owners are hesitant to start new projects in light of uncertainty over tariffs, government funding, and other policy upheavals,” said, Ken Simonson, chief economist of the Associated General Contractors of America. “Spending has slowed over the past year and as current projects wind down, there may be several months of declining construction activity.”
Read more.