Construction Spending Down in July

The recent report from the U.S. Department of Commerce stated that overall construction spending  in the US is down 0.6% month-over-month in July.

Residential construction fell by 2.1%, up slightly from June’s 1.3% decrease, while non-residential construction gained 0.2%, down slightly after rising 1.1% in the previous month. Overall, this is not surprising news. As home purchases continue to decrease in the tightening credit market making it unwise for contractors to take on large residential projects. More worrying is the notable decline in private construction.

There was a 1.4% decline in private construction and a 1.4% increase in public building, which came in at 0.2% and 0.4% in the month of June.