WASHINGTON — Construction spending rose by 0.1% in July, below the 0.4% gain expected, as residential construction saw gains but nonresidential construction saw declines.
Nonresidential fell by a larger 1.0% compared to residential construction gains of 0.6%, data released by the Commerce Department Tuesday morning showed.
Analysts surveyed by MNI had expected total construction spending to rise by 0.4% after a large fall of 1.1% in June. June was revised up to a 0.8% drop, May construction was revised down to 0.7% gain, while April was unrevised at a 1.7% increase.
Private residential construction rose by 0.6% in the month, following a 0.9% decline in June. Home building ex. new homes, also known as remodeling, saw a 2.1% rise, according to an MNI calculation.
Also based on an MNI calculation, total new homes fell by 0.3%. Single-family building was down 0.3%, and multi-family building posted a 0.4% decline.
In addition to the gain in private residential, private nonresidential construction fell by 1.0% in July, driving the decline in total private construction. The main drivers of the category were declines in commercial (3.4%), health care (2.2%), and power (0.7%).
Following an upward June revision to a 1.7% decline, public construction spending rose 0.7% in July.
The rise in public construction was driven by a large 3.2% rise in health care, a 2.1% rise in education, and an 8.2% rise in conservation and development.
State and local construction rose 0.6% in the month. Federal construction was also up 2.5%.
