Increases in public-sector construction spending, driven by stimulus funds, helped boost total construction activity by almost $2 billion between February and March, according to a new analysis of federal spending figures released today by the Associated General Contractors of America.
“If it weren’t for public investments in infrastructure and construction, this industry would be in free fall,” said Ken Simonson, the association’s chief economist. “Fortunately, the stimulus is now helping rebuild a construction industry devastated by relentless declines in private-sector activity.”
New Census Bureau figures show construction spending at an annualized rate of $847.3 billion, an increase of 0.2 percent from $845.5 in February, Simonson said.
Private sector construction spending still dominates the market but it declined 0.9 percent between February and March, from $555.7 to $550.8 billion.
Public-sector construction, increased 2.3 percent from $289.9 to $296.5 billion during the same time frame.
