Steel Markets
Construction Spending Declines for a Fourth Month
Written by Sandy Williams
August 4, 2020
Construction spending fell for the fourth straight month to a seasonally adjusted annual rate of $1.36 trillion in June, according to an analysis of data by the Associated General Contractors of America.
Public construction dipped 0.7 percent in June led by a 2.7 percent decline in educational construction and a 1.7 percent drop in highway and street construction.
Private nonresidential construction gained 0.2 percent, benefiting from increased spending in power construction, manufacturing construction and office construction. Increases were partially offset by a 1.3 percent drop in commercial construction spending (retail, warehouse and farm structures).
Private residential construction spending slid 1.5 percent as single-family homebuilding hit its lowest level since late 2016. Spending on single-family homes plunged 3.6 percent, while multifamily construction rose 3.0 percent, posting a third month of increases.
State and local governments are facing budget deficits that will postpone or delay infrastructure and other construction projects, said AGC.
“Regrettably, the overall downward trend in spending is likely to continue and to spread to more project types as work that began before the pandemic hit finishes up,” said Ken Simonson, the association’s chief economist. “Unless the federal government invests heavily—and promptly—in infrastructure projects, both public and private nonresidential investment are likely to shrink further.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
CRU: Global sheet prices remain under pressure as exporters undermine domestic markets
One cause of this was increased competitiveness from imports that have put pressure on some domestic producers.
CRU: Sheet import demand softens as domestic price gains have slowed
US domestic sheet price gains have begun to slow as previously pulled-forward demand has led to a decline in orders.
CMC looks beyond Arizona micro-mill woes to long-term viability of construction mart
Despite the economic and geopolitical upheaval of the last five years, CMC President and CEO Peter Matt points out that the construction market has been an essential element of the way forward.
US importers face stricter rules under revamped S232 tariffs
“CBP expects full compliance from the trade community for accurate reporting and payment of the additional duties. CBP will take enforcement action on non-compliance," the agency said in a March 7 bulletin.
Steel exports rebound in January
US steel exports recovered to a five-month high in January after having fallen to a two-year low in December. This growth follows four consecutive months of declining exports.