The U.S. Census Bureau reported that June construction spending fell to its lowest level since June 2015. This is the third straight month that construction spending fell (May’s construction spending report was later revised and reported a 0.1% drop). Though the decline brought spending to a long-time low, the decline was slight, only 0.6%.
The reported data is in contrast to economists’ predictions. Forecasts were that June construction spending would rise by 0.5%. These estimates were largely based on the government’s assumptions for private residential and non-residential construction spending. Spending on residential construction remained nearly the same.
Private sector son-residential spending fell 1.3% from May. Healthcare and Education saw the biggest drops in spending within the private non-residential category with a 2.0% and 2.8% dip respectively. Total public construction declined by .6% from May. Within the public sector, commercial construction spending saw a particularly large decline: 14.5% down from May. Despite the dip reported today, June construction spending is still up .3% from June 2015.