<\/span><\/h2>\nIt has been witnessed for the last few months that the construction spending has been lowered to a noticeable percentage. The U.S. Census Bureau reports a 0.1% decrease in construction spending in May 2024, compared to April. This decline in spending has been seen in residential and commercial construction projects, ultimately impacting the construction equipment industry as well.<\/p>\n
Residential Construction<\/b><\/p>\n
There has been a noticeable decrease in spending on residential construction. May 2024 saw a 1.2% decrease in new single-family house spending from the previous month. This decline was already expected after the increase in the mortgage rates which rose by 7.3% on average. Potential buyers have been discouraged by this high rate, and new construction projects have been delayed.<\/p>\n
Non-Residential Construction<\/b><\/p>\n
When it comes to non-residential construction, an inconsistency has also been seen with a decrease of 2.5% in spending. On the other hand, data centres have seen a sharp increase in demand, with building expenditures rising by 69% in the last year due to the work-from-office trend revival.<\/p>\n
Manufacturing Facility<\/b><\/p>\n
Although many big equipment manufacturers have initiated building new manufacturing plants and expanding their business in other states, the overall manufacturing sector is also in decay. For example, a big heavy equipment company<\/b> has recently installed its facility in Texas, that will be supporting the local economy as well.<\/p>\n
In some cases, there have been project delays and cancellations as a result of the predicted boom in electric vehicle production not completely materializing. For example, compared to the prior year, construction spending on EV-related facilities decreased by 4.3%.<\/p>\n
Infrastructure and Renewable Energy<\/b><\/p>\n
The Infrastructure Investment and Jobs Act has stimulated the growth of infrastructure projects. Over the previous year, spending in this sector grew by 3.8%. Utility-scale battery storage project construction has increased by 9.1%, while solar project construction has increased by 8.2%.<\/p>\n