–Private Residential Building Down On Both New Homes, Remodeling
–Private Nonresidential Construction Post First Gain Since March 2009
By Kevin Kastner
WASHINGTON (MNI) – Spending on construction fell 1.0% in July and
was revised sharply lower in both May and June, data released by the
Commerce Department Thursday morning showed.
Private residential construction fell 2.6% in July, the third
straight decline. Single-family construction fell 2.5%, while
multi-family building fell 1.5%. As a result, total new home
construction was down 2.4% in July, while home remodeling activity was
down 2.9% based on a Market News International calculation.
Private nonresidential construction rose 0.8% in July, the first
increase since March 2009. The gain was led by an 8.3% surge in the very
large power construction sector, as well as a 4.7% gain in the
communications sector. The remaining sectors were generally lower.
Public construction was down 1.2%, led by a 6.5% decline in Federal
construction spending. State and local government spending fell 0.6%.
The June construction level of $805.2 billion was the lowest since
July 2000, when it stood at $783.8 billion.
June construction spending was revised down to an $813.1 billion
level, or a 0.8% decline from May. May construction spending was revised
down to $819.7 billion, or a 2.8% decline from April.
Analysts in a Market News International survey had expected
construction spending to fall 0.6% for July, though forecasts ranged
from a 1.2% decline to a 0.3% increase.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
