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Public construction spending soars, but private projects still face hurdles

February 2, 2024

After a revision flipped November’s 0.1% drop back to positive, December’s jump now marks the 19th consecutive month of growth, largely due to infrastructure and manufacturing activity, Basu said, noting big gains for spending overall last year.

“Nonresidential construction spending finished 2023 up more than 20% and will carry ample momentum in 2024,” said Basu in the release. “While much of that strength is due to surging investment in new manufacturing structures, roughly half of the 16 nonresidential subsegments saw spending increases by 20% or more in 2023.”

Notably, highway and street projects increased 4.1% in December, leading all subsectors in nonresidential construction.

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