Friday, August 1, 2014

Construction Spending Plunged 1.8% in June

Construction spending decline 1.8% in June – the largest negative since January 2013 –according to the Census Bureau. Nonetheless, the level was 5.5% higher than a year earlier.

All three components on construction spending – private residential, private non-residential and public construction – declined.

Public construction led the decline, shrinking 4.0% in June and 2.9% from a year ago. The decrease in spending on highway and street construction led the decline.

The drop in spending on new single-family homes was the sole reason for the decline in private residential construction, which shrank 1.4%. Multifamily and residential improvement construction spending increased in June by 2.5% and 0.2% respectively. However, all components improved on an annual basis.

Private non-residential construction decline 1.6%, led by a 3.6% decline in construction spending on power and utility structures.

Read the Census Bureau report.

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