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US construction spending increases solid 0.9% in November
Spending on U.S. construction projects increased 0.9% in November as strength in home building offset weakness in other parts of the construction industry.
The November gain followed a bigger 1.6% rise in October and left construction spending up 4.4% through the first 11 months of 2020 compared to the same period in 2019, according to the Commerce Department.
For November, spending on residential construction rose 2.7% with single-family construction surging 5.1 percent while apartment construction was flat, according to the new data released Monday. Record low mortgage rates have spurred strong demand for housing even as a global pandemic resulted in widespread lock downs for other parts of the economy.
Spending on non-residential projects fell 0.8% with spending for office buildings dropping a sharp 8.1%. Spending on government projects dipped 0.2% in November. Many state and local governments are facing severe budget constraints as a sharp recession has cut into tax revenues.
Construction employment on Long Island still lags behind last year.
The number of construction jobs in Nassau and Suffolk counties fell 6 percent year over year, dropping from 84,400 in Nov. 2019 to 79,600 in Nov. 2020, according to the Associated General Contractors of America.
Regionally, construction employment in New York City decreased by 11 percent from Nov. 2019 to Nov. 2020, losing 16,700 construction jobs year over year.
Construction employment in the Orange-Rockland-Westchester area fell by 3,500 jobs from Nov. 2019 to Nov. 2020, for an 8 percent drop.
Nationwide, construction employment declined in 203 out of 358 metro areas, between Nov. 2019 to Nov. 2020, the AGCA reports.
Construction employment still behind last year
Construction employment on Long Island still lags behind last year.
The number of construction jobs in Nassau and Suffolk counties fell 6 percent year over year, dropping from 84,400 in Nov. 2019 to 79,600 in Nov. 2020, according to the Associated General Contractors of America.
Regionally, construction employment in New York City decreased by 11 percent from Nov. 2019 to Nov. 2020, losing 16,700 construction jobs year over year.
Construction employment in the Orange-Rockland-Westchester area fell by 3,500 jobs from Nov. 2019 to Nov. 2020, for an 8 percent drop.
Nationwide, construction employment declined in 203 out of 358 metro areas, between Nov. 2019 to Nov. 2020, the AGCA reports.
Besides New York City, the metro areas seeing the largest year-over-year drops in construction employment in November include the Houston area, which lost 22,500 jobs for a 9 percent drop; the Midland, Texas area, which lost 9,800 jobs for a 25 percent decline; and the Montgomery/Bucks/Chester counties area in Pennsylvania, which lost 8,800 construction jobs for a 16 percent drop.
John Caravella Esq., is a construction attorney and formerly practicing project architect at The Law Office of John Caravella, P.C., representing architects, engineers, contractors, subcontractors, and owners in all phases of contract preparation, litigation, and arbitration across New York and Florida. He also serves as an arbitrator to the American Arbitration Association Construction Industry Panel. Mr. Caravella can be reached by email: John@LIConstructionLaw.com or (631) 608-1346.
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Long Island Construction Law does not own this content. This content was created by and and was published to the Long Island Business New.
