Construction compensation in the second quarter of this year increased at the fastest pace since 2008.
The federal Bureau of Labor Statistics reported that construction compensation rose by 0.8 percent from the first quarter to the second quarter of the year and by 2.5 percent between last year’s second quarter and this year’s. Those were the largest three-month and 12-month gains seen since 2008.
In a separate release, the Associated Builders and Contractors, a national group that mostly represents nonunion construction companies, reported that spending on nonresidential fixed investments decreased by 2.2 percent between the first and second quarters of the year. Nonresidential fixed investments are closely tied to spending in construction and other forms of business.
Looking at data from the Bureau of Economic Analysis, the ABC reported that investment in structures declined by 7.9 percent and that residential investment fell for the first time since the first quarter of 2014.
“Today’s report suggests that construction activity has stalled a bit more than thought, largely due to slowing residential investment growth and low levels of public sector investment,” Anirban Basu, ABC chief economist, said in an official statement. “With apartment rents no longer rising in a number of markets, the nation’s apartment building boom has taken a bit of a pause.”