Category Archives: construction spending


Commerce Department Report for Chicago Construction

According to the Chicago Tribune, the Commerce Department reported that in the month of July construction spending grew over 0.6 percent , rising to the highest level in 4 years.

Construction spending increased to an adjusted annual rate of $915 billion, with an increase of 7.1 percent above the previous August, which was led by private residential building.  This improvement in the construction industry is due to the housing recovery over the last year.  Lodging construction also had solid growth in the month of August.

To view more information about this article, visit the Chicago Tribune page.

 

College Construction Spending in Accordance to the Rise and Fall of the Economy

According to the The Chronicle of Higher Education, research presented at the Association for the Study of Higher Education has shown that state expenditures on college construction for higher-education does not coincide with the rise or fall of the economy.  The study has also shown that college construction spending tended to rise in the best and worst of times, while tending to fall when the budget for state spending was fairly stable.  According to James C. Palmer, who oversees an annual survey of state higher-education spending and is a professor of higher-education at Illinois State University, says “The new study shows the planning of capital projects is a different beast than the planning of annual budget cycles that the states go through.”

March Construction Spending Shows Gains: Another Boost for the Economy

After two months of declining spending, builders finally began to increase spending on construction projects. The Commerce Department released its monthly report and found that construction spending ticked up 0.1% in March. March’s gain resulted in construction spending at a seasonally adjusted annual rate of $808.1 billion. Last March, construction spending hit a 12 year low of $762.6 billion, resulting in a year over year increase of 6%  for March.
Economists, however, are still not convinced of when construction spending is going to be back to healthy levels. One of the biggest drags on construction growth is government construction work, which fell 1.1% to the slowest pace since February 2007. State and local goverments led the way in the reduction in construction spending, with levels not seen since November 2006. Meanwhile, Federal spending increased 3.8%. Private, nonresidential projects saw in increase in construction spending of 0.7%. Residential construction rose 0.7%, and was due mostly to the construction of single-family homes – something that has been declining since the 2008 housing crisis began.