Updated data published by the U.S. Census Bureau suggests total spending on construction for both the public and private sectors has accelerated this year, with annual spending rates reaching the highest levels since early 2008. States and localities, which collectively spent an estimated $252 billion last year, are also investing more in public infrastructure this year.
Looking back further, state and local construction spending climbed significantly in the years leading up to the Great Recession. Federal Recovery Act funds then further helped support projects in 2010 and 2011. But, by late 2012, inflation-adjusted state and local spending was hovering around 10-year lows. (See chart below.)
The Census Bureau’s monthly figures -- published as annual rates -- represent how much spending occurs over a full year instead of a single month. Each monthly figure is seasonally adjusted and then multiplied by 12 for an annual rate. Data covers construction of new structures or improvements “put in place” in a given month, regardless of when contractors actually receive payments or when a project began.
Construction spending covers a broad range of various sectors of state and local government. Here are a few of the more notable trends:
Road and highway construction
Spending on highway and street infrastructure totaled more than $83 billion last year, or approximately a third of total construction spending nationally. This spending category, which includes everything from pavement to rest area facilities, is the single largest of any for which the Census Bureau reports data.One area that’s seen significantly more investment is bridges. Data suggests a steady increase in spending dating back to early 2006.