–Private Nonresidential Building Falls By 1.7%, Public -0.9%
–Private Residential Construction Spending Up 0.9%, Public +1.2%
By Brai Odion-Esene and Ian McKendry
WASHINGTON (MNI) – U.S. construction spending fell 0.6% in August,
fueled by declines in both private and public nonresidential
construction, data released by the Commerce Department Tuesday morning
showed.
The decline in overall construction spending was the lowest since
the 3.0% drop in July 2011, and marks the second straight monthly
decline. The decrease in July was revised to -0.4% from -0.9%
Private residential construction was up 0.9% in August, with
single-family construction rising by 2.8%, and multi-family building
+3.7%.
Residential building excluding new homes fell 1.7% in August after
a 2.2% drop in July, a MNI calculation shows. All residential building
measures were up from a year ago.
Private nonresidential construction fell 1.7% in August, with
declines in power (-3.7%), manufacturing (-0.7%) and commercial (-1.3%),
perhaps signs of the impact that uncertainty is having on business
investments. This edged out gains in transportation (+0.2%) and
amusement/recreation (+1.2%).
Public construction fell 0.8%, with the decline in the larger state
and local government category (-0.9%) negating the 0.3% rise in federal
government construction spending.
Within the drops in public construction spending, education was
down 3.4%, and spending on highways and streets fell by 0.6%.
Analysts in a MNI survey had expected construction spending to rise
0.7% in August.
** MNI Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
