Construction Spending, Recovery "Uneven," Says AGC Economist

The unemployment rate in the construction section was 11.4% at the end of last year, but construction spending increased only 0.1% in December compared with an increase of 0.8% in November, which helps highlight how uneven the recovery is. "Given the variability of weather, especially in winter, the downturn in December is not cause for alarm," said Ken Simonson, chief economist for The Associated General Contractors of America. "The data does show how uneven the recovery remains with residential construction doing very well, but the public sector remains weak, and private nonresidential construction is mixed."