Record construction spending by governments from the federal, state and local level is helping to buttress weakened construction markets and buffer the economic impact of the housing market collapse. So says an article in a recent issue of Building Design & Construction.
Governments are on track to spend $300 billion this year on schools, roads, bridges and other projects, writes Author Dennis Cauchon, citing U.S. Census Bureau reports.
As residential building has fallen dramatically over the last two years the building of homes and apartments fell to a 17-year low in July government spending increased by more than 12% last year and is projected to grow by 7% this year, according to Commerce Department figures.
Government spending on construction is now greater than the money spent on residential building. In contrast, 2005 residential construction spending was a record $481 billion, more than double government spending, the Building Design & Construction article states.