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Nonresidential construction spending continues to grow at a double-digit pace YoY in the US. A wave of infrastructure projects, funded by the Infrastructure Investment and Jobs Act of 2021 (IIJA), have stimulated this growth. Dams and railways are a particular focus of federal organizations, now tasked with directing the management of IIJA funds. Amtrak, for example, plans to triple its investments in infrastructure through fiscal 2025, utilizing billions of dollars in public funding to expand stations and replace aging bridges.

Related ETF: First Trust RBA American Industrial Renaissance ETF (AIRR)

US nonresidential spending continued to grow at a pace north of 17% YoY in August, according to the latest numbers from the US Census Bureau. Spending was up on a monthly basis in 12 of the 16 nonresidential subcategories. Though residential construction remains in contraction compared to a year ago, robust work on manufacturing facilities and public works has offset those downturns and kept overall US construction spending growth positive in every month throughout 2023.

Spending on what the Census Department classifies as “conservation and development” saw the largest MoM spike in August, rising 5.8% and indicating that work on facilities constructed for irrigation has continued to get desperately-needed attention from governments. That growth is likely to be sustained in months to come as the US Army Corps of Engineers has…

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