WASHINGTON — Construction spending exceeded economist expectations in June as record federal investment contributed to a 0.1% gain from May, the Commerce Department reported Monday. May’s spending was revised sharply to a 1.0% drop from the 0.2% dip originally reported.
Economists expected June construction spending to fall 0.5%, according to the median estimate from Thomson Reuters. Private construction fell 0.6% and private residential construction fell 0.8% in June.
“A pickup in public works projects helped to offset further declines in private sector construction,” Diane Swonk, chief economist at Mesirow Financial, said in a research note. “The economy slowed fairly dramatically during the second quarter and growth is likely to remain weak.”
