New construction projects may be slowing down slightly in New Jersey as part of a nationwide trend. According to the U.S. Department of Commerce, the first drop in construction spending in six months came in May 2019. While home building projects declined for the fifth month in a row, May marked the first decline in overall construction spending. In May, spending fell by 0.8%, the first drop since a 1.3% decrease in November 2018. Adjusted by season, there was $1.29 trillion spent on construction projects nationwide. However, the May decrease came after a 0.4% jump in further project spending only one month earlier.
According to the report, construction projects of multiple kinds showed an overall spending decrease. Home construction fell by 0.6% and non-residential construction declined by 0.9%. In addition, government spending on construction also fell by 0.9% as the federal government invested less in construction projects. Builders say that they hope that declining mortgage rates will inspire more people to invest in new home construction and help the market to rise again. Along with the decline in home building came a 0.8% decrease in spending on new homes. However, there was a 1.9% rise in spending on apartments.
Non-residential construction had also fallen in April to an even larger extent, marking a 1.4% drop. The report indicated that fewer projects were being undertaken in a range of areas, including retail shopping centers and office buildings.
When businesses do undertake a new construction project, it can be important to ensure that key terms are fully defined. Budget overruns and delays can lead to serious construction disputes. New Jersey and New York construction contract lawyers can work with developers to help move a project forward.
