Construction spending dips slightly in June
Construction spending made a turnaround in June after inching up in May. The June estimate was at a seasonally adjusted annual rate of $883.9 billion, 0.6% below the revised May estimate of $889.4 billion, according to data from the U.S. Census Bureau.
Nonetheless, June’s spending is still 3.3% above the June 2012 estimate of $855.8 billion.
For the first half of 2013, construction spending totaled $408.5 billion, a 5.1% increase from the $388.8 billion for the same period in 2012.
Spending on private construction dipped slightly in June to $622.8 billion, down 0.4% from May’s revised estimate of $625.4 billion. Residential construction was at a seasonally adjusted annual rate or $332.1 billion in June, remaining nearly unchanged from the May estimate of $332.2 billion.
Additionally, nonresidential construction was at a seasonally adjusted rate of $290.8 billion in June, down 0.9% from the May estimate of $293.3 billion.
In June, the estimated seasonally adjusted annual rate of public construction spending was $261.1 billion, a 1.1% drop from the revised May estimate of $264.0 billion.
"Despite slippage in June, the construction sector is moderately healthy, taking into account prior monthly increases. Volatility should be expected with recently atypical wet weather on the East Coast," said analysts at Econoday.