Construction Spending, Jobs Grow in February

Construction spending grew by nearly eight percent year-over-year and industry jobs increased in 35 states in February, according to the AGC. The improved spending numbers are fueled mostly by private sector projects; federal investment in construction dropped 1.1 percent in February and 10 percent from a year ago.

New construction nationwide totaled $885 billion in February, up 1.2 percent from the revised January level and 7.9 percent higher than a year ago, according to an April 1 report from the Census Bureau. During the first 2 months of this year, construction spending amounted to $120.1 billion, about 6.6 percent above the $112.6 billion for the same period in 2012.

"It is encouraging to see growth in both monthly and year-over-year totals in private residential and nonresidential construction spending," said Ken Simonson, the Associated General Contractors of America's (AGC) chief economist. "There are increasing signs that 2013 will be a good year for a wide variety of project types."

Construction employment also expanded in 35 states in February, adding 48,000 jobs nationally, the largest one-month gain in nearly six years, according to the AGC.

"The turnaround in construction hiring that began in a few states two years ago has now spread to most of the country," Simonson said. "There are strong indications that the expansion will continue for residential and private nonresidential construction, but investment in infrastructure and public buildings is likely to shrink further."

Federal investment in construction, according to the February data, was down 10 percent from the same time last year. In contrast, new single-family construction rose 4.3 percent from January's level and 34 percent from a year ago. New multifamily construction fell 2.2 percent for the month but was 52 percent above the February 2012 mark.

"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 added.

Manufacturing construction rose 0.3 percent for the month and 9.9 percent over February 2012. Private transportation construction slumped 2.4 percent in February but climbed 17 percent year-over-year. Warehouse construction soared 8.3 percent and 19 percent, respectively, and new and remodeled private office construction rose 0.3 percent and 25 percent.

Simonson noted that only 12 states and D.C. lost construction jobs between January and February, while employment held steady in three states: Connecticut, Montana and Vermont. Among the 35 states with one-month increases in construction employment, Utah had the largest percentage rise, followed by Mississippi, Oklahoma and Missouri. Texas added the largest number of jobs, followed by Virginia, California and Missouri.

Click through to view the AGC's state employment data by rank and by state.