US construction spending declines 0.7% in June
SILVER SPRING, Md. (AP) — U.S. construction spending fell again in June, the fourth straight decline as the coronavirus outbreak continues to wreak havoc on the economy.
Spending on U.S. construction projects fell 0.7% in June as both home building and nonresidential activity declined, the Commerce Department said on Monday. Private and government spending on construction both also declined by the same 0.7% figure.
The construction industry has been hammered by shutdowns forced by the coronavirus pandemic. As cases rise again in some parts of the country, there are concerns about further building declines in coming months.
Analysts had expected a turnaround in spending in June as many parts of the country reopened, but it did not happen. May’s number, however, was revised upward.
Home building in June fell 1.5%, dragged down by a 3.6% drop in single-family home projects. That was somewhat offset by a 3% rise in multi-family home building.
Nonresidential construction rose 0.2%, led by increases in hospitals and clinics, manufacturing facilities and hotels.