Construction spending fell for the fourth month in a row in May, declining 0.3 percent from April and 3.5 percent from a year earlier, the largest year-over-year decrease since February 2019, according to an analysis by the Associated General Contractors of America of a new government report. Association officials noted that growing uncertainty about potential new tariffs, labor policy and tax rates are prompting many private sector developers to delay or cancel planned projects.
“Uncertainty about tariffs, tax rates and labor availability are making it hard for many developers to risk moving forward with planned construction projects,” said, Ken Simonson, chief economist of the Associated General Contractors of America. “While public sector demand remains solid, it just isn’t enough to offset the private sector pullbacks in activity.”
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