WASHINGTON - Construction spending edged higher by 0.1% in June, while economists were expecting a decrease, as federal construction reached a record high, the Commerce Department reported Monday.
May’s construction spending was revised sharply lower to a decrease of 1.0% from a 0.2% decrease reported last month. Construction spending in April increased 2.3%.
Economists expected June construction spending would 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, smaller than the declines in May. Private nonresidential construction declined 0.5%, the 15th consecutive monthly decline.
Public construction increased 1.5% to the highest level since October 2009. Federal construction surged 4.6% to the highest level on record dating back to January 1993.
Growth in federal spending and business investment for construction revived in the second quarter, the Commerce Department’s real gross domestic product report showed.
