US construction spending drops in June

AP Graphics

WASHINGTON (AP) – U.S. construction spending fell for a third straight month in June with spending on nonresidential construction dropping by the largest amount in six months.

The Commerce Department says construction spending fell 0.6 percent in June following declines of 0.1 percent in May and 2.9 percent in April.

Nonresidential construction declined 1.3 percent, the biggest setback since December, while residential activity was unchanged in June. Spending on government projects fell 0.6 percent, the fourth straight decline, with both federal and state and local construction activity down.

Construction weakened in the April-June period after posting solid gains in the winter. Some analysts believe warmer-than-normal winter weather caused builders to move up the start of some projects, causing the second quarter to look weaker. Analysts expect construction will rebound in coming months.

 

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