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Total U.S. construction spending for the first half of 2023 reached $917.4 billion, showing a modest 2.5% inflation-adjusted increase compared to 2022. However, this figure reflects significant growth when compared to the same period in 2020, with a remarkable 16.5% increase.
U.S. Construction Spending Sees 16.5% Inflation. (Construction Index)
U.S. Construction Spending Trends
According to The Waldron News, as per recently published data by the U.S. Census Bureau, in tthe half of 2023, the total U.S. construction speending reached $917.4 billion. This serves as a crucial economic gauge, indicating the extent of investment and activity within the construction sector. It’s noteworthy that while the U.S. construction spending total only registered a 2.5% inflation-adjusted increase compared to the same period in 2022, it’s essential to recognize that inflation-adjusted U.S. construction spending has witnessed substantial growth, surging by more than 16.5% when compared to the corresponding period in 2020.
The year 2020 witnessed a substantial decline in construction activity due to the COVID-19 pandemic, leading to disruptions in supply chains and alterations in spending patterns. The U.S. construction spending subsequent recovery and expansion underscore the industry’s ability to adapt and its impact on the broader economy, encompassing key sectors such as residential housing, commercial development, and infrastructure projects.
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Disparities in Regional Construction Industry Wages Amid U.S. Construction Spending
Longview Journal News stated that the increased in U.S. construction spending, particularly in residential housing, has led to a resurgence in construction employment. Following a sharp pandemic-related decline to 6.5 million, construction employment now exceeds pre-COVID levels, with over 7.9 million workers employed as of July 2023. The demand for construction workers translates to robust wages, with a national median annual wage of $50,570, outpacing the overall median wage of $46,310 for all occupations.
Regionally, the Midwest offers some of the highest adjusted wages for construction workers. Illinois leads with an adjusted median annual wage of $73,630, with Minnesota ($63,390), North Dakota ($62,336), Wisconsin ($61,877), and Ohio ($61,141) also ranking in the top 10. Conversely, the South has the lowest adjusted wages, with Arkansas ($44,217), Florida ($44,602), and Alabama ($45,961) in the bottom 10.
These findings stem from an analysis by Construction Coverage, utilizing data from the U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis, and U.S. Census Bureau, ranking states by cost-of-living adjusted median annual wages for construction workers.
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