US construction spending falls 0.5% in July, lowest in about 3 years
Macro
The Commerce Department reported that construction spending in July, seasonally adjusted, fell 0.5% from the previous month to an annual rate of $2.158 trillion, the lowest level since October 2023, about three years. Higher mortgage rates weighed on single-family home construction. Economists polled by Reuters had expected no change. Compared to the same month a year earlier, spending decreased 3.8%. Private sector construction spending fell 0.5% from the previous month, a larger decline than June's 0.1% drop. Residential construction fell 1.3%, with single-family homes down 3.2%, while multifamily housing rose 0.2%. Private nonresidential construction, including power plants and factories, increased 0.4%, with power plant construction up 0.5% but factory construction down 0.8%. Public sector construction spending fell 0.2%, reversing the previous month's 0.1% increase. State and local government construction spending was flat, while federal government spending decreased 3.5%.
