Construction Spending Continues Decline

Total construction spending in the U.S. continued its downward slide in December, falling by 1.4 percent, according to monthly statistics released by the U.S. Census Bureau.

The December figure is 3.6 percent below December 2007’s estimate. On the whole, the value of construction in 2008 was 5.1 percent below the amount spent in 2007.

Reflecting the year’s housing woes, total residential spending in 2008 fell 27.2 from 2007.

At $412 billion, total nonresidential spending for 2008 gained 15.3 percent over 2007 spending levels.

According to Stephen Sandherr, chief executive officer of the Associated General Contractors of America (AGC), the Census Bureau’s latest data reflects the need for infrastructure investment.

“Today’s construction figures underscore the dramatic decline in business activity that is putting hundreds of thousands out of work, endangering the viability of tens of thousands of businesses and dragging on the broader economy. This is a stark reminder of the need for immediate and significant federal investments in vital construction and infrastructure projects,” he says. “Without those investments, we estimate over a million construction workers will lose their jobs while many of the small businesses that dominate the construction industry will close their doors. With these investments, however, construction companies will be able to save those jobs, expand payrolls and invest in equipment and supplies, while building the foundation for a stronger economy.”

More detailed construction data is available online.