Construction spending falls to one-year low in June

[WASHINGTON] US construction spending fell to a one-year low in June, weighed down by declines in outlays on private and public construction projects.

The Commerce Department said on Monday that construction spending dropped 0.7 per cent to US$1.355 trillion, the lowest level since June 2019. Data for May was revised to show construction outlays falling 1.7 per cent instead of decreasing 2.1 per cent as previously reported.

Economists polled by Reuters had forecast construction spending would rebound 1.0 per cent in June. Construction spending edged up 0.1 per cent on a year-on-year basis.

Spending on private construction projects slipped 0.7 per cent. Spending on residential projects fell 1.5 per cent, offsetting a 0.2 per cent gain in outlays on nonresidential construction projects such as manufacturing and power plants.

Spending on public construction projects dropped 0.7 per cent.

REUTERS