WASHINGTON (AP) – U.S. builders trimmed spending on construction projects in August for a second straight month with housing, non-residential and government activity all seeing declines.
Construction spending dropped 0.7 percent in August after a 0.3 percent slip in July, the Commerce Department reported Monday. It was the third decline in the past five months.
Residential construction decreased 0.3 percent, while non-residential activity was down 0.4 percent. Spending on government projects fell 2 percent, dragged down by a sharp drop in activity at the state and local level. That has fallen to the lowest point since March 2014.
Economists believe that the slowdown in construction will be temporary, with ultra-low interest rates and a growing economy prompting greater building activity in coming months.
Construction spending totaled $1.14 trillion in August at a seasonally adjusted annual rate, down 0.3 percent from the level in August 2015.