National Construction Spending on the Rebound in February

New Census Bureau data show that construction spending is on the rise from depressed January levels in residential, private nonresidential, and public investment, according to an analysis by the Associated General Contractors of America (AGC).

It is encouraging to see growth in both monthly and year-over-year totals in private residential and nonresidential construction spending, Ken Simonson, the association's chief economist, said in a statement announcing the findings. There are increasing signs that 2013 will be a good year for a wide variety of project types.

Construction put in place totaled $885 billion in February, up 1.2 percent from January levels. The February 2013 total was 7.9 percent higher than in February 2012. Private residential construction jumped 2.2 percent for the month and 20 percent year-over-year. Private nonresidential spending rose 0.4 percent for the month and 6.1 percent year-over-year. Public construction spending increased 0.9 percent for the month but slipped 1.5 percent over 12 months.

The Miami Herald reported Friday thatBroward County added 4,100 construction jobs in February, while Miami-Dade showed no gains or losses.

There is little doubt that construction of new houses and apartments will continue to boom in the next several months, based on data covering recent housing starts and building permits, as well as reports of rising rents, occupancy rates and new-home sales in many markets, Simonson said. On the nonresidential side, there should be a lot of activity involving pipelines, manufacturing, railroads and trucking, and warehouses.

AGC officials cautioned that the rise in public investment was likely to be short-lived and urged policy makers in Washington to make infrastructure investment a priority.