AGC reports decline in infrastructure investments

by Carly Midgley | November 21, 2016 12:40 pm

The Associated General Contractors of America (AGC) has observed a general decline in infrastructure investment over the past year. Photo © BigStockPhoto
The Associated General Contractors of America (AGC) has observed a general decline in infrastructure investment over the past year.
Photo © BigStockPhoto

A recent analysis by the Associated General Contractors of America (AGC) suggests public-sector investments in infrastructure are declining, despite the year’s generally strong growth in multi-family and private non-residential spending categories.

“There is still plenty of oomph in private demand for construction and growing support for school construction, but public infrastructure investment is crumbling just when it is needed most,” says AGC’s chief economist, Ken Simonson. “These conflicting trends have left total construction spending nearly flat for the past 15 months.”

Increases have been observed in certain categories, but the general trend is one of decline. From August to September:

For year-to-date spending from January to September:

AGC officials say this decline in infrastructure investment will impede the sector’s ability to recover. They encourage political leaders to pass measures supporting infrastructure development.

“Public-sector funding cuts for infrastructure aren’t just hurting the construction industry, they are also slowing commutes and undermining quality of life in many communities,” says Stephen E. Sandherr, AGC’s chief executive officer.

Source URL: https://www.constructionspecifier.com/agc-reports-decline-in-infrastructure-investments/