U.S. Construction Spending Drops More Than Expected In June
Reflecting decreases in sending on both private and public construction, the Commerce Department released a report on Monday showing U.S. construction spending fell by more than expected in the month of June.
The report said construction spending slid by 0.7 percent to an annual rate of $1.355 trillion in June after tumbling by 1.7 percent to a revised rate of $1.365 trillion in May.
Economists had expected construction spending to decrease by 0.5 percent compared to the 2.1 percent slump originally reported for the previous month.
The bigger than expected drop came as spending on private construction fell by 0.7 percent to an annual rate of $1.002 trillion in June from the revised May estimate of $1.009 trillion.
Spending on residential construction dove by 1.5 percent to a rate of $534.2 billion, more than offsetting a 0.2 percent uptick in spending on residential construction to a rate of $467.7 billion.
The report said spending on public construction also decreased by 0.7 percent to an annual rate of $353.3 billion in June from the revised May estimate of $355.8 billion.
Spending on educational construction plunged by 2.7 percent to a rate of $85.8 billion, while spending on highway construction tumbled by 1.7 percent to a rate of $102.6 billion.
While spending declined for the fourth consecutive month, the Commerce Department said total construction spending in June was up by 0.1 percent compared to the same month a year ago.