Construction spending in the U.S. unexpectedly decreased in the month of June, the Commerce Department revealed in a report on Tuesday.
The Commerce Department said construction spending tumbled by 1.3 percent to an annual rate of $1.206 trillion in June from the revised May estimate of $1.222 trillion. Economists had expected spending to rise by 0.4 percent.
The unexpected decline in construction spending came amid a steep drop in spending on public construction, which plunged by 5.4 percent to a rate of $265.1 billion.
Spending on educational construction slumped by 5.5 percent to $67.5 billion, while spending on highway construction plummeted by 6.6 percent to $82.4 billion.
The report said spending on private construction also edged down by 0.1 percent to a rate of $940.7 billion in June.
While spending on non-residential construction inched up by 0.1 percent to $437.8 billion, spending on residential construction dipped by 0.2 percent to $502.9 billion.
Despite the monthly decrease, the Commerce Department said construction spending in June was up by 1.6 percent compared to the same month a year ago.
by RTT Staff Writer
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