As has been the case for the last 24 months, public dollars flowing from the $1.2 trillion Infrastructructure Investment and Jobs Act, as well as follow-on legislation such as the $52 billion CHIPS and Science Act, are propping up the sector as a whole.
Indeed, spending on public projects was up a whopping 9.6% for the year, while private spending grew at less than half that rate.
“Private nonresidential spending has lagged and, after falling 0.3% in May, is up just 4.1% year over year,” said Basu. “That weakness can be tied to interest rate-sensitive segments like office and commercial, both of which have also been hampered by altered demand dynamics in the wake of the pandemic.”
