US Aug Construction Spending Falls 0.6%;Nonresidential Decline
--Private Nonresidential Building Falls By 1.7%, Public -0.9%
--Private Residential Construction Spending Up 0.9%, Public +1.2%
WASHINGTON (MNI) - U.S. construction spending fell 0.6% in August, fueled by declines in both private and public nonresidential construction, data released by the Commerce Department Tuesday morning showed.
The decline in overall construction spending was the lowest since the 3.0% drop in July 2011, and marks the second straight monthly decline. The decrease in July was revised to -0.4% from -0.9%
Private residential construction was up 0.9% in August, with single-family construction rising by 2.8%, and multi-family building +3.7%.
Residential building excluding new homes fell 1.7% in August after a 2.2% drop in July, a MNI calculation shows. All residential building measures were up from a year ago.
Private nonresidential construction fell 1.7% in August, with declines in power (-3.7%), manufacturing (-0.7%) and commercial (-1.3%), perhaps signs of the impact that uncertainty is having on business investments. This edged out gains in transportation (+0.2%) and amusement/recreation (+1.2%).
Public construction fell 0.8%, with the decline in the larger state and local government category (-0.9%) negating the 0.3% rise in federal government construction spending.
Within the drops in public construction spending, education was down 3.4%, and spending on highways and streets fell by 0.6%.
Analysts in a MNI survey had expected construction spending to rise 0.7% in August.
** MNI Washington Bureau: 202-371-2121 **