Construction spending rises as association urges timely renewal of highway funding

Craig Madole Chief Executive Officer
Craig Madole Chief Executive Officer
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Construction spending increased 0.4 percent from March to April and 0.9 percent over the past year, according to an analysis by the Associated General Contractors of America released on June 1. The association called on Congress and the White House to pass a new highway and transportation funding bill before the current law expires in September, citing its importance for maintaining growth in construction spending and supporting economic activity.

“Highway construction has been a major contributor to total nonresidential spending,” said Ken Simonson, the association’s chief economist. “For the past several months, total spending has increased only when there was a rise in year over year highway construction activity.”

The government report showed that construction spending reached $2.172 trillion at a seasonally adjusted annual rate in April, marking modest gains both month-over-month and compared to April 2025. Public construction rose 0.4 percent for the month and was up 3.7 percent from one year earlier, with highway and street projects increasing by similar margins.

Private residential construction posted a monthly increase of 0.8 percent but single-family building remained below last year’s levels by nearly three percent. Private nonresidential construction declined slightly overall; manufacturing-related projects dropped sharply while sectors such as electric power saw moderate gains.

Association officials emphasized that federal funding for highways and transit supports infrastructure improvements nationwide, benefiting travelers, freight movement, safety initiatives, contractors, workers, and related industries supplying materials or equipment.

“Any lapse in funding these vital projects would force contractors to sideline construction workers and delay purchasing needed equipment and materials,” said Jeffrey D. Shoaf, the association’s chief executive officer. “That would be a significant setback for the economy overall, and especially for millions of drivers, transit riders, and businesses that rely on good roads, as well as for construction workers and their families.”

The Nevada Chapter of the Associated General Contractors of America represents general and specialty contractors within Nevada’s construction sector; it operates under its charter while providing resources to support industry involvement in civic affairs and state legislation through member advocacy efforts, according to the official website.



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