One construction industry trade group is seeing signs builders are expecting fewer opportunities in the near term based on recent data on job openings and hirings. 

Construction spending increased less than 1% from January to February nationwide, even as contractors kept hiring and job opening rates at low levels, according to the Associated General Contractors of America (AGC) after reviewing two new government reports. Association officials noted that industry hiring appears to be slowing as demand for most types of construction “cools.” 

“Construction spending rebounded in February, following widespread severe weather that may have slowed projects in January,” said Ken Simonson, AGC’s chief economist, in a statement. “Investment remains positive compared to a year ago but the growth rate for all major categories has cooled, while contractors have trimmed hiring and slashed job openings.” 

Spending totaled $2.20 trillion at a seasonally adjusted annual rate in February, reflecting a growth rate lower than any seen before 2019. 

A separate government report showed that the number of workers hired by construction firms in February totaled 354,000, seasonally adjusted, a decline of 20,000 or 5.3% from a year earlier. The number of job openings on the last day of February totaled 264,000, a drop of 165,000 or 38% from a year earlier, while the job openings rate fell to 3.1%, the lowest February rate since 2018.