Data released today showed that construction spending dropped 1.3% in June, after posting a 0.5% slide the prior month. Analysts at Wells Fargo, point out that large declines in public works projects were behind most of the overall drop.
Key Quotes:
“Overall construction spending fell 1.3% in June, and spending in May now shows a slightly smaller 0.5% drop. Both public and private outlays fell during the month, but public construction fell 3.7%, the largest one-month drop since March 2002.”
“Spending for sewage and waste disposal has been a big growth area in public projects, with outlays up 17.7% over the past year. Many communities have paired these projects with greenways and parks, boosting amusement and recreation outlays.”
“Residential construction also appears to have been hindered by the rainy weather, with spending for single-family homes falling 0.7% in June and down 8.5% year-over-year.”
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