Construction spending falls 0.6% in June as government spending falls to lowest level since 2006
| August 01, 2013 |
The decline is the biggest seen in the last five months.
Government construction spending fell 1.1 percent in June to $261 billion—it’s lowest level since 2006. Public residential construction saw the biggest decrease in government spending at 2 percent to $6 billion.
Public nonresidential spending fell 1.1 percent to $255 billion. The biggest nonresidential spending decrease was in public safety which fell 3.6 percent to $9.5 billion.
Despite the losses, June’s spending total is 3.3 percent higher than it was a year ago at this time, according to data from the U.S. Commerce Department.
Total residential construction spending saw a slight dip of 0.1 percent to $338 billion, but total nonresidential spending fell 1 percent to $545.7 billion.
Of those nonresidential categories, the biggest dip came in religious construction which fell 6.8 percent to $3.3 billion, followed by commercial spending which fell 5.1 percent to $45 billion.
Total private construction spending fell 0.4 percent to $623 billion. Private residential construction was flat for the month, but nonresidential fell 0.9 percent.