Spending on projects underway in July inched down 0.1 percent from June as declines in private nonresidential and multifamily construction offset pickups in public outlays and single-family homebuilding, according to an analysis of new government data that the Associated General Contractors of America released today. Association officials noted the results are consistent with a survey the association released last week that found many owners have canceled, deferred, or scaled back projects due to tariffs and labor shortages.
“Our survey of construction firms found 16 percent of contractors reported projects had been canceled, postponed, or scaled back as owners’ demand or need changed due to tariffs while 45 percent of firms report project delays because of labor shortages,” said Ken Simonson, the association’s chief economist. “And 26 percent of firms said projects had been affected by changes in owners’ demand or need due to other policy changes such as federal funding, taxes, and regulations.”
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