Construction investment in October reaches highest level in 8 years
Investments in construction for October amounted to $1.107 trillion. This is a seasonally adjusted yearly rate. It is 1 percent more than the total from September and an additional 13 percent more than the figure from October 2014.
This is the most growth that has occurred in the construction industry in approximately eight years, amounting to the highest total since 2007.
“The October data were positive across the board, with robust growth for the month and year in residential, private nonresidential and public construction,” Ken Simonson, the association's chief economist, said. “The pause that had appeared in private and public nonresidential spending for several months seems to have ended.”
The figures show that contractors will have more than enough work for 2016. However, industry leaders remain concerned that there will not be enough skilled workers for both current and future projects; currently, the demand for skilled workers is increasing faster than the workers can be supplied.
“The breadth of the expansion and the large number of categories with double-digit increases suggests that construction will continue growing well into 2016,” Simonson said. “My only concern is whether contractors will be able to find enough qualified workers to undertake all of the projects.”