US construction spending falls 0.4 percent in September, second straight monthly drop

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U.S. construction spending fell for a second straight month in September as a slight rebound in housing was offset by further declines in nonresidential building and in government projects.

The Commerce Department says construction spending dropped 0.4 percent in September compared to August when spending fell 0.5 percent.

After four straight monthly declines, housing construction edged up 0.4 percent in September but nonresidential building fell 0.6 percent with weakness in construction of hospitals, power plants and factories.

Government construction was also down, falling 1.3 percent as spending on projects at the federal and state and local levels declined.

The overall declines in the past two months were disappointing but economists say the weakness will be temporary. They are looking for construction activity to support economic growth in coming months.