Nationwide construction spending grew year-over-year in November despite decreasing from October, according to a new analysis from the Associated General Contractors of America (AGC).
Construction spending swelled 7.7 percent from November of 2011 to November of 2012, AGC reported. But spending edged down 0.3 percent from October of this year, its first loss after seven months of increases.
Home building had a strong November, as spending on new single-family houses moved up 1.3 percent from October and 29 percent year-over-year. Spending on multi-family houses rose 0.5 percent month-to-month and 46 percent from November of 2011.
AGC Chief Economist Ken Simonson predicted a boost in nonresidential construction.
“Private nonresidential construction has been in a holding pattern for the past several months, but last night’s passage of a [federal] tax bill should encourage many businesses to go ahead with projects they have held in reserve,” Simonson said in a news release. “Despite a drop of 0.7 percent in November, the year-over-year total was up by 8.2 percent, and this figure appears poised to return to double-digit percentage gains in the next few months.”
Contact Seltzer at rseltzer@cnybj.com