Despite the many claims to the contrary, the construction industry in the United States is actually in one of its most active periods, with spending hitting 5-year peaks. In a report released by the Commerce Department in January 2014, it was revealed that construction expenditure in the country grew to $934.4 billion. This figure signified a 1% increase from the annual construction expenditure in March 2009, and marked the pinnacle of a steady increase that began eight months prior to November 2013.
There are several factors that can be attributed to the increase in construction spending. One of the most significant is the increase in private construction. Despite the slight decrease in the number of publicly funded construction projects, the high number of private projects resulted in a bullish industry that shows tremendous promise for the short- to medium-term.
Just how significant the contribution of the private sector was to this growth is apparent when you take a look at the figures. Privately-funded construction projects actually registered a considerable increase as well, with expenditures reaching levels that haven’t been seen since December 2008. Although not as dramatic as the overall increase in construction spending, expenditures for private construction registered a fairly respectable 2.2% increase in November 2013, after flat lining throughout most of the preceding months.
Much of the spending is occurring in the residential sector, although construction in the non-residential sector is expected to increase significantly in the coming months as well. Even as private construction spending reached peaks unattained since June 2008, non residential construction expenditure registered a remarkable 11-month peak as well. Much of the development in the non residential sector is comprised of factory construction and gas pipelines building.
All these indications seem to point to a fairly significant upward trend, and the potential for increased growth in the months to come. With unmistakable signs of life across the board, the construction instead is clearly headed toward a period of renewed growth.