AGC of America: Trade tariffs could slow construction spending

Construction spending in January was unchanged from December and was moderately higher than in January 2017, according to an analysis of new government data by the Associated General Contractors of America (AGC of America). However, association officials said further gains, especially in desperately needed infrastructure investment, would be in jeopardy if the administration adopts tariffs on key construction materials.

“Construction spending in January showed a mixed pattern, with noteworthy increases in public outlays and single-family homebuilding balancing out declines in private nonresidential and multifamily investments,” said Ken Simonson, the association’s chief economist. “Unfortunately, all categories are threatened by the harmful actions under consideration regarding steel and aluminum.”