–May and June Construction Spending Revised Sharply Higher
–New Residential Building Up 0.2%, Remodeling Down 2.9%
–Nonresidential Construction Fell 0.4%; Manufacturing Key Factor
By Kevin Kastner
WASHINGTON (MNI) – Spending on construction fell 1.3% in July, well
below expectations, with both private and public construction down in
the month, data released by the Commerce Department Thursday morning
showed.
Analysts in a Market News International survey had expected
construction spending to rise 0.2% in July. Construction spending in
June was revised up to a 1.6% rise from the previously reported 0.2%
increase, while May spending was revised up to a 2.5% rise from the
previously reported 0.3% gain.
Private residential construction fell 1.4% in July, but
single-family construction rose 0.1% and multi-family building was up
1.4%. As a result, total new home construction was up 0.2% in July,
according to a Market News International calculation.
Home remodeling activity plunged 2.9% in the month after sharp
incresaes in the previous two months, a Market News International
calculation shows. However, unlike new home building, remodeling
spending was up sharply from July 2010.
Private nonresidential construction fell 0.4% in July, though the
declines were isolated in the manufacturing, transporation, lodging, and
amusement sectors.
Public construction fell 2.1% in the month to a level of $275.0
billion, the lowest dollar level since December 2006. Federal
construction spending fell 3.6% while state and local construction fell
1.9% to the lowest level since November 2006.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
