The spike in Covid-19 caused by the highly contagious Delta Variant is slowing the economic recovery in numerous sectors of the economy—case in point the construction industry.
"National nonresidential construction spending expanded 0.1% in July, a decrease of 4.2% from last year at this time, according to an Associated Builders and Contractors analysis of data published Sept. 1 by the U.S. Census Bureau," reports Jennifer Goodman.
A press release from the Associated Builders and Contractors (ABC) elaborated on the bad news with a soundbite from ABC Chief Economist Anirban Basu, who says that the numbers are "meaningfully worse than they appear."
"When adjusting for inflation, the volume of construction services delivered by the U.S. commercial contractors actually declined in July," explains Goodman.
ABC blames the construction slowdown on higher materials prices and worsening skills shortages.
Gooodman provides additional details from the analysis, such as the trend having a bigger impact on public construction spending compared to private. The sectors with the largest declines were 1) public safety (-38.5%), lodging (-30%), and conservation and development (-21.5%).
FULL STORY: Delta variant 'significantly' slowing construction recovery, economist says
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