Spending on nonresidential construction fell 1.1 percent in March from February, its fourth consecutive month of shrinkage, and reaching a 12-month decline of 7.4 percent, the Associated General Contractors of America (AGCA) reported.
Projects were delayed or canceled as demand for office and retail space has slowed, government agencies are running deficits, materials are fetching record prices when they can be found, and supply chains remain disrupted, AGCA officials said in a statement detailing the sag in spending.
Power industry construction, the largest nonresidential category, slid 0.4 percent in March and 8.3 percent over 12 months; construction for retail, warehouse, and farm businesses was down 0.5 percent for the month and 8.8 percent for the year, the AGCA noted.
Building for manufacturers sagged by 1.3 percent in March and 7.8 percent since April 2020 and office construction dropped 0.4 percent and 4.2 percent, respectively.
Government construction edged down 1.5 percent in March and 4.6 percent for the year.
TREND FORECAST: We maintain our forecast that the commercial construction sector will continue to decline as more people commute less and work at home more.
