Construction Spending Erodes Further in May

Supply chain disruptions, rising materials prices and labor shortages continued to slow construction spending in May, reported the Associated General Contractors of America (AGC). Officials with the association called on the Biden administration to remove tariffs on key construction materials, allow unemployment supplements that are keeping people out of the workforce to expire and take steps to address supply chain backups.

“Many construction firms would likely be even busier if only they could find materials for their projects and workers for their teams,” said Stephen Sandherr, AGC’s CEO. “Ending a program that is basically paying people not to work will help, especially if the administration also removes tariffs that are driving prices up on key construction materials.”