With an increase in spending on private construction offset by a steep drop in spending on public construction, the Commerce Department released a report on Thursday showing that total U.S. construction spending came in flat in the month of July.
The Commerce Department said construction spending was estimated at an annual rate of $1,153.2 billion in July, virtually unchanged from the revised June estimate of $1,153.5 billion. Economists had expected spending to climb by 0.6 percent.
The lack of growth in construction spending in July came on the heels of an upwardly revised 0.9 percent increase in June, which compares to the previously reported 0.6 percent drop.
The report said spending on private construction climbed by 1.0 percent to an annual rate of $875.0 billion in July from a revised $866.5 billion in June.
While spending on residential edged up by just 0.3 percent to a rate of $445.5 billion, spending on non-residential construction jumped by 1.7 percent to a rate of $429.5 billion.
On the other hand, the Commerce Department said spending on public construction tumbled by 3.1 percent to an annual rate of $278.2 billion in July from a rate of $287.0 billion in June.
Spending on educational construction showed a substantial decrease during the month, plunging by 8.3 percent to a rate of $64.6 billion.
Meanwhile, the Commerce Department noted that total construction spending in July was up by 1.5 percent compared to the same month a year ago.
by RTT Staff Writer
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