Wednesday, April 1st11.2°C
25757
24949

Construction spending falls 1.8 per cent in June, biggest decline in more than 3 years

WASHINGTON - U.S. construction spending fell in June by the largest amount in more than three years as housing, non-residential construction and government spending all weakened.

Construction spending dropped 1.8 per cent in June on a seasonally adjusted basis after rising by a revised 0.8 per cent in May, the Commerce Department reported Friday. It was the biggest setback since a 2.8 per cent fall in January 2011.

The weakness was widespread with spending on housing down for a second straight month, falling 0.3 per cent, while non-residential building activity fell 1.6 per cent, the biggest decrease since January. Spending on government projects dropped 4 per cent, the biggest decline in more than a decade.

The June performance represented a setback to hopes stronger construction activity will help support overall economic growth.

The decline in housing reflected a 1.4 per cent fall in spending on single-family construction which offset a 2.5 per cent rise in the smaller apartment sector. Even with the two months of declines, housing construction is still 7.4 per cent above the level of a year ago.

The drop in non-residential activity reflected weakness in hotel construction and the category that includes shopping malls. Non-residential building is 11.2 per cent higher than a year ago.

The 4 per cent fall in government projects was the biggest one-month setback since government building tumbled by 6 per cent in March 2002. The June weakness reflected a 5.2 per cent decline in state and local government projects which offset a 10.4 per cent rise in spending on federal building projects.

Government building activity has been constrained in recent years by the fall in tax revenue as a result of the Great Recession and efforts at the federal level to get soaring budget deficits under control.

A slump in construction in the winter contributed to the economy shrinking at an annual rate of 2.1 per cent in the January-March quarter, the biggest decline since the first quarter of 2009 during the depths of the Great Recession.

Economists say a rebound to a 4 per cent growth rate in the second quarter will be followed by solid growth of around 3 per cent in the overall economy in the second half of this year.

The Canadian Press


Read more Business News

25790


Recent Trending




Today's Market
S&P TSX14942.55+40.11
S&P CDNX681.32+1.25
DJIA17698.18-77.94
Nasdaq4880.23-20.66
S&P 5002059.69-8.20
CDN Dollar0.7929+0.0003
Gold1204.20+21.10
Oil49.55+1.95
Lumber278.90+5.90
Natural Gas2.60-0.04

 
Okanagan Companies
Pacific Safety0.12-0.01
Knighthawk0.010.00
QHR Technologies Inc1.55+0.07
Cantex0.03-0.01
Anavex Life Sciences0.23+0.02
Metalex Ventures0.045+0.005
Russel Metals24.83+0.79
Copper Mountain Mining1.19+0.03
Colorado Resources0.11-0.01
ReliaBrand Inc0.0036-0.0024
Sunrise Resources Ltd0.04-0.01
Mission Ready Services0.23-0.02
Decisive Dividend Corporation1.80+0.02

 



25779

FEATURED Property
2130540#407 700 Martin Avenue
2 bedrooms 3 baths
$499,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Down payment

If you have less than 20% down payment, mortgage insurance is required through Canada Mortgage & Housing (CMHC), Genworth or Canada Guaranty. Homeowners no longer need the minimum 5% down payment ...


CRA Notice of Assessment

Many Canadians rush to file their taxes on time each year and don’t think about it until the next year. One of the most overlooked notices received from the CRA annually is the annual Notice of ...


Medical confidential?

If ICBC asks your doctor for your information you may wonder: Can ICBC ask my doctor for my medical information? Can ICBC request a medical report from my doctor without my consent? What is ICBC entit...

_








Member of BC Press Council


25692