WASHINGTON – Spending on U.S. construction projects fell 1.1 percent in June, the biggest decline in more than a year as spending on public construction dropped at the highest rate in more than five years.
The Commerce Department says the decline in June brought total construction spending to a seasonally-adjusted $1.32 trillion, 6.1 percent higher than a year ago.
Despite the June declines, analysts expect construction spending to contribute to overall growth in the economy this year, particularly as the market for existing homes remains tight.
Government spending on construction projects fell 3.5 percent in June, the biggest decline since March of 2013.
Spending on private residential projects fell 0.5 percent in June, with apartment building projects seeing a 2.8 percent decline.