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.
Read more Business News
- Man sentenced for targeting kidsKelowna - 3:00 pm
- Student stabbed to deathCanada - 2:02 pm
- Scams plague OkanaganVernon / N. Okanagan - 2:14 pm
- Scam man has 44 convictionsKelowna - 11:51 am
|QHR Technologies Inc||1.26||-0.01|
|Anavex Life Sciences||0.20||-0.0195|
|Copper Mountain Mining||2.42||+0.02|
|Sunrise Resources Ltd||0.02||-0.005|
|Mission Ready Services||0.265||-0.005|
“Is this a fair offer from ICBC?”…. “How much should I settle for?”… “What is my claim worth?” These are just some of the questions I regularly get as...
Last night I was privileged to be able to speak at the Greater Westside Board of Trade business awards dinner. Photo: ContributedI talked about Innovation and Collaboration which are two very interes...
There will be a time when you will need to decide who you should appoint as executor of your Will. As well, there may be a time when you will be asked by someone to act as the executor of his or her W...