Overall US construction spending in July unexpectedly posted the first decline in half a year on the back of the sharpest fall in home building since January, the Commerce Department said today.
Construction spending fell 0.4 per cent in July to $1.17 trillion (€862 billion), the lowest level since April and the first drop since January. Economists polled had expected overall construction spending to rise 0.1 per cent in the month.
Private residential construction fell 1.4 per cent in July to a seasonally adjusted $534 billion, the steepest monthly drop since January and a record 17th consecutive monthly decline.
Residential spending is now at its lowest level since February 2004.
Private non-residential spending, which includes hotels, office buildings and shopping centres, rose 0.4 per cent in July to a record seasonally adjusted annual rate of $346 billion.
That brought total private construction down by 0.7 per cent.
Public construction rose 0.7 per cent in the month to a record seasonally adjusted annual rate of $289 billion. State and local spending rose 0.7 per cent in April to an annual rate of $273 billion, while federal spending fell 0.4 per cent to $19.4 billion.