U.S. Construction Spending Slows

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U.S. construction slowed in June as government spending dropped, but still remained far above 2012 levels.

Construction spending in June was estimated at a seasonally adjusted annual rate of $883.9 billion, 0.6 percent below the revised May estimate, according to U.S. Department of Commerce data. The June figure is 3.3 percent above the June 2012 estimate of $855.8 billion.

In the first half of the year, construction spending totaled $408.5 billion, 5.1 percent above the $388.8 billion for the same period in 2012.

Spending on private construction slipped to a seasonally adjusted annual rate of $622.8 billion, 0.4 percent below the revised May estimate of $625.4 billion, the agency said. The pace of residential construction was essentially unchanged from May.

But public sector construction spending slipped in June to an estimated seasonally adjusted annual rate of $261.1 billion, 1.1 percent below the revised May estimate of $264.0 billion. Highway construction fell to a seasonally adjusted annual rate of $75.0 billion, 2.8 percent below the revised May estimate of $77.1 billion.