In October, total construction spending increased by 0.6%, driven by robust gains in manufacturing, power, education projects, and single-family homebuilding, according to the Associated General Contractors of America. The construction market remains healthy overall, with a notable shift in nonresidential segments. Manufacturing construction is expanding, while commercial construction and highway/street spending are declining.

Private residential construction rose by 1.2%, driven by a sixth consecutive month of growth in single-family construction (1.1%). However, multifamily project spending decreased by 0.2%. Private nonresidential construction edged up by 0.1%, while public construction investment increased by 0.2%. Spending on manufacturing plants rose by 0.9%, but highway and street spending declined by 0.4%. Commercial construction, including warehouse, retail, and farm construction, decreased by 1.5%, while power, oil, and gas projects saw a 1.0% increase. Education spending rose by 0.4%, while spending on transportation facilities slipped by 0.3%.

Association officials attributed the decline in highway and street construction to delays in implementing federal permitting reforms by the Biden administration. They emphasized the need to simplify Buy America rules and streamline the permitting process to boost construction activities across the country.

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