US construction spending increased in August on month, but it remains down on year, Kallanish learns from the Associated General Contractors of America.

Construction spending increased 0.1% from July to August, reaching $1.287 trillion, but it remains -1.9% below August 2018.

While public construction remains robust, weakness and delays due to staffing in the private sector are anchoring potential growth, the association says.

“"Eighty percent of the nearly 2,000 contractors responding to our workforce survey this summer reported difficulty filling hourly craft positions," says association chief economist Ken Simonson. "Of the firms experiencing staffing challenges, almost half—44% —said that projects had taken longer than anticipated. Those delays may be one reason that spending put in place is lagging, even though contractors almost universally report they are busy and would be doing even more projects if they could find enough workers."