Construction Spending Slips in June

Washington, DC, July 31, 2007—Construction spending slid 0.3% in June to an annual rate of $1.18 trillion, according to a report from the Commerce Department.  It was the first drop in gauge since January.

Economists had expected a gain of 0.1% during June.

May’s construction numbers were revised up to reflect an increase of 1.1%, for the original estimate of an increase 0.9%.

Year-to-date, construction spending is 3.5% lower than the first six months of 2006.

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Expenditures on private projects dropped 0.3%. Spending on public-sector projects was flat. State and local spending rose 0.1%. Federal government expenditures dropped 1.1%.

Spending on private residential projects during the month fell 0.7% for its 16th consecutive monthly drop. Non-residential private sector spending was up 0.3%.

Expenditures on office projects in June rose 5.9%. Spending on private education projects increased 3.3%.