Construction Spending MISSES BIG Falling 0.6%, But Housing Jumps 0.9%

home building

Photo: Justin Sullivan/Getty Images

Construction spending fell 0.6 per cent month-over-month (mum) in August, according to the latest release by the Census Bureau.This missed expectations of a 0.6 per cent rise. But spending was up 6.5 per cent from a year ago.

Last month’s reading was revised higher to -0.4 per cent.

But there were positive signs for housing, with residential spending up 0.9 per cent mum, and up 16.1 per cent YoY.

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Construction spending for August is out at 10 .a.m ET. 

Economists polled by Bloomberg expect construction spending to rise 0.6 per cent month-over-month, after falling 0.9 per cent in July.

Last month’s decline was led by a drop in private residential spending.

Construction spending along with indicators like housing starts help gauge the direction of housing activity.

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