🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Construction spending falls to one-year low in June

Published 08/01/2016, 10:17 AM
Updated 08/01/2016, 10:20 AM
© Reuters. A construction worker on a building site in downtown Los Angeles

WASHINGTON (Reuters) - U.S. construction spending fell for a third straight month in June as outlays dropped across the board, suggesting a downward revision to the second-quarter economic growth estimate published last week.

Construction spending declined 0.6 percent to its lowest level since June 2015 after an upwardly revised 0.1 percent dip in May, the Commerce Department said on Monday. Construction outlays were up 0.3 percent from a year ago.

Economists polled by Reuters had forecast construction spending rising 0.5 percent in June after a previously reported 0.8 percent drop in May. Their June estimates were largely based on the government's assumptions for private residential and nonresidential construction spending in the advance GDP report.

The government reported on Friday that gross domestic product increased at a 1.2 percent annual rate in the second quarter after rising at a 0.8 percent pace in the January-March period. Weak spending on home building and nonresidential structures, including gas and oil well drilling, contributed to anemic growth in the last quarter.

In June, construction spending was held down by a 0.6 percent drop in private construction. Outlays on private residential construction were unchanged as spending on both single-family and multi-family projects fell. Private residential construction spending edged up 0.1 percent in May. Spending on renovations increased in June.

Spending on private nonresidential structures fell 1.3 percent in June, the biggest decline since December 2015, after rising 0.4 percent in May.

Public construction spending slipped 0.6 percent in June, dropping for a fourth straight month. Outlays on state and local government construction projects, the largest portion of the public sector segment, fell 0.5 percent. That was the fourth consecutive monthly decline. Federal government construction spending dropped 2.3 percent in June.

© Reuters. A construction worker on a building site in downtown Los Angeles

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.