Private and public construction fared well in the final 2 months of 2017, leading to consecutive months of record high spending.
Construction spending increased 0.7% in December, beating projections by 0.3%.
This rise can be attributed to a robust job market, low interest rates, and post-natural disaster rebuilding efforts.
The year-over-year spending in the construction industry in 2017, showed a 3.8% increase. While that is the smallest increase in 6 years, residential spending still rose 10.6%.
Industry stakeholders are now focusing on the government’s proposed 1.5 trillion dollar infrastructure plan. The new plan will apparently require public agencies to provide 80% of a project’s funding to qualify for 20% from the government.
This may lead to an increase in public-private partnerships between state and local governments and the private sector,
It remains to be seen if this development will leave current projects (that haven’t yet secured their federal funding commitment) in a difficult spot.