Steel Products
AGC: Construction Spending Rises, Infrastructure Spending Lags
Written by Sandy Williams
February 1, 2018
Construction spending increased for the fifth consecutive month in December, but an infrastructure bill is needed to address growing deficiencies in transportation, water and wastewater infrastructure, says the Associated General Contractors of America in an analysis of new government data.
“Construction spending ended the year on a high note, with gains over November levels for all major categories, but the annual totals for 2017 were much more mixed,” said Ken Simonson, the association’s chief economist. “For now, it appears residential construction will grow strongly again in 2018, while private nonresidential categories will be uneven, and public spending is at risk of recording a third consecutive decline.”
Association executives called on federal, state and local officials to boost funding and shorten the review process for approving infrastructure projects. The officials said that new infrastructure funding is vital for supporting economic growth, as well as public health and safety.
Construction spending in December totaled a record $1.253 trillion at a seasonally adjusted annual rate, an increase of 0.7 percent from the November total. For the month, private nonresidential construction spending rose 1.1 percent, private residential spending gained 0.5 percent, and public construction spending added 0.3 percent.
{loadposition reserved_message}
Residential construction spending rose 10.6 percent from 2016 to 2017 as a whole. There were increases in all three segments: new single-family housing (up 9.1 percent from 2016), new multifamily (up 3.7 percent) and improvements to existing single- and multifamily (up 15.3 percent).
Private nonresidential spending edged up 0.6 percent, as declines in two large segments—power and energy (down 4.2 percent for the year) and manufacturing (down 12.7 percent)—partially offset increases in retail, warehouse and farm construction (up 14.0 percent) and office construction (up 1.5 percent).
In contrast to the increase between November and December, public construction spending for the full year shrank 2.5 percent from the 2016 total, as lower totals for infrastructure segments offset a 2.5 percent increase in public educational spending. The largest public category, highway and street construction, declined 3.7 percent for the year. Public transportation construction edged down 0.9 percent. Sewage and waste disposal construction fell 13.0 percent, water supply dropped 10.3 percent, and conservation and development notched a 5.8 percent decline.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products
US and Canadian rig counts stabilize
US counts continue to hover just above historic lows, while Canadian figures remain comparatively healthy.
Plate market sources critique mill hikes amid current market conditions
Following spot market plate price increase notices issued by domestic mills this past week, participants are contemplating the rationale behind the increases and whether they will stick. Some sources anticipate that current market conditions will shift in November and believe the increases may set a new "pricing floor."
Oregon Steel Mills lifts plate prices by $60/ton
Oregon Steel Mills has joined other producers in announcing a price increase of at least $60 per short ton on steel plate.
CRU: Construction of pilot plant for green steel process starts
Voestalpine and partners have begun building an industrial-scale Hy4Smelt demonstration plant in Linz, Austria, which they hope will become key in the decarbonization of steel.
Rig count increases in the US and in Canada
Oil and gas drilling activity increased this week in the US and Canada for the third consecutive week, according to the latest Baker Hughes rig count data. US counts continue to hover just above historic lows, while Canadian figures remain comparatively healthy.