Total Construction Spending Down in January 2023
Total Construction Spending
As the economy continues to look shaky and interest rates continue to rise, total construction spending in the United States was down again in January 2023 for a total of $865 billion dollars. This was down only 0.5% from December 2022, however it represents the eighth consecutive month in which total construction spending has fallen since peaking in May 2022 at $954 billion.
Builders of all sizes and shapes are facing increasing headwinds as it becomes more difficult and expensive to secure debt, hire and retain top talent, and find new work as the residential housing and commercial office space markets slow. Residential housing permits and starts are still well below their rate from just a year ago in January 2022.
Now more than ever, builders must focus on efficiently managing capital, keeping accurate books, and ensuring their pricing and marketing strategies are optimized.