Construction spending is on the decline in the U.S. Construction spending dropped 1.3% in June to a seasonally adjusted annual rate of $1.287 trillion, according to a release from the Census Bureau earlier this week. June's data is also 2.1% below the June 2018 estimate.
A decrease in public works projects and wet weather are the likely culprits behind the second straight month of declines, states a release from Wells Fargo Securities. Figures comparing the first six months of 2019 to 2018 are also down slightly.
Private construction spending, including residential and nonresidential construction, dipped less than half a percent in June. Meanwhile, public construction fell sharply by nearly 4% in June. Educational and highway construction each contributed to the major decline in public spending.
Total residential spending was down 8% in June compared to June 2018, while nonresidential, commercial spending was more than 10% below the previous year. Despite the downturn in much of the categories, total public construction spending had its best June on record, dating back to 2002.
Economists expected spending to increase 0.3% in June, according to Reuters.
-Michael Miller, managing editor