EmailConstruction spending fell 1.3% in July after increasing an upwardly revised 1.6% (from 0.2%) in June. The Briefing.com consensus expected construction spending to be flat in July.
Private construction spending fell 0.9% and public spending declined 2.1%.
Private residential construction fell 1.4%. Surprisingly, the entire decline came from home improvement projects. Even though the number of homes currently under construction declined in July, new residential construction spending increased 0.2%. Home improvement spending fell 2.8%.
Private nonresidential construction declined 0.4%. The decline in spending can be attributed to a 2.9% decline in lodging and a 6.0% decline in manufacturing construction spending. Office and commercial construction, both of which remain oversupplied, showed modest growth in July.
