AGC: Stimulus helps US June construction modestly, but pain continues
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Total construction spending eked out a small rise in June as gains in stimulus-aided public categories offset decreases in homebuilding and private nonresidential spending, the Associated General Contractors of America said Wednesday in an analysis of new Census Bureau data. "Stimulus dollars are supporting construction jobs, but the pain is continuing for most contractors and their workers who depend on private projects or school construction," said Ken Simonson, the association's chief economist.
Simonson noted that total construction spending inched up 0.1 percent in June at a seasonally adjusted annual rate, buoyed by a 1.5 percent increase in public construction, which offset declines of 0.8 percent in private residential and 0.5 percent in private nonresidential spending.
"Every private category was negative, most deeply so, compared to June 2009," Simonson observed. "But there were encouraging gains for the month in private hospital and power construction, both of which should be growth markets over the next several quarters."
Among public categories, Simonson remarked that highway and wastewater construction each rose for the fourth consecutive month; other public transportation facilities-transit, rail and airports-jumped 20 percent from a year earlier; and public housing soared 31 percent compared to June 2009.
Stephen Sandherr, chief executive officer of the construction association, called on Congress and the White House to quickly enact legislation to provide long-term funding for public infrastructure spending and certainty for private construction.
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