Reflecting decreases in spending on both private and public construction, the Commerce Department released a report on Monday showing an unexpected drop in U.S. construction spending in the month of June.
The Commerce Department said construction fell by 0.6 percent to an annual rate of $1.134 trillion in June from a revised $1.141 trillion in May. The decrease came as a surprise to economists, who had expected spending to climb by 0.6 percent.
While the drop in construction spending in June was unexpected, revised data showed that spending edged down by just 0.1 percent in May compared to the previously reported 0.8 percent drop.
The unexpected decrease in construction spending was partly due to a decline in spending on private construction, which slid by 0.6 percent.
Spending on residential construction was nearly unchanged, but spending on non-residential construction tumbled by 1.3 percent.
The report said spending on public construction also fell by 0.6 percent, as spending on educational construction dipped by 0.5 percent and spending on highway construction plunged by 1.4 percent.
Despite the monthly decrease, the Commerce Department noted that total construction spending in June was up by 0.3 percent compared to the same month a year ago.
by RTT Staff Writer
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