WASHINGTON (AP) – U.S. construction spending fell for a third straight month in June with spending on nonresidential construction dropping by the largest amount in six months.
Construction spending fell 0.6 percent in June following declines of 0.1 percent in May and 2.9 percent in April, the Commerce Department reported Monday.
Nonresidential construction declined 1.3 percent, the biggest setback since December, while residential activity was unchanged in June. Spending on government projects fell 0.6 percent, the fourth straight decline, with both federal and state and local construction activity down.
Construction weakened in the April-June period after posting solid gains in the winter. Some analysts believe warmer-than-normal winter weather caused builders to move up the start of some projects, causing the second quarter to look weaker. Analysts expect construction will rebound in coming months.
The weakness in construction in the spring was reflected in a disappointing report on overall growth in the second quarter, as measured by the gross domestic product. The GDP expanded at a modest annual rate of 1.2 percent in the April-June quarter with residential construction falling at an annual rate of 6.1 percent after six quarters of strong gains.