Highlights
Construction spending fell 0.3 percent in June, following a 1.1 percent surge in May. The June increase was below the market forecast for a 0.2 percent rise in construction outlays. The June drop in construction was led by private residential outlays with public construction outlays also declining. Nonresidential construction continued its uptrend. Today's report was below expectations but did not show any real changes from trend. Public construction declined in June but followed strong gains in prior months.

On a year-on-year basis, overall construction outlays edged up to down 2.4 percent in June from down 2.6 percent in May.

By sectors, private residential construction fell 0.7 percent in June, following a 0.6 percent drop the prior month. Public outlays fell 0.6 percent, following a 2.0 percent jump in May. Private nonresidential construction rose 0.3 percent, following a 2.8 percent surge in May.

By components nonresidential gains were seen in lodging, up 3.3 percent; office, up 1.2 percent; commercial, up 0.2 percent; religious, up 0.7 percent; amusement, up 1.2 percent; and educational, up 3.3 percent.

By components nonresidential declines were seen in health care, down 0.8 percent; communication, down 2.4 percent; power, down 0.2 percent; manufacturing, down 1.2 percent; and transportation down 0.1 percent.

Today's report shows construction much on the same trends as seen earlier. Housing is declining - no surprise. Nonresidential is still on a healthy uptrend. Public construction merely retraced slightly after recently strong gains. Both bond and equity markets should like the numbers since they show the economy on still a moderate growth pace despite weak housing.

2007 Release Schedule

Released On: 1/3 1/31 3/1 3/30 4/30 5/31 6/29 7/31 9/4 9/28 10/31 11/30 Released For: Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct