Construction spending fell 0.6% month-over-month in June. This missed expectations for a 0.4% rise.
But construction spending was up 3.3% on the year.
Meanwhile, May’s construction spending was revised up to show a 1.3% rise, form an initial reading of 0.3%.
Private residential construction was flat on the month, and up 18.1% on the year.
Investors watch this number because it offers insights into the housing market and into homebuilder stocks.
It also helps gauge the health of the economy as companies and the government invest in new infrastructure when they are feeling confident about the economy.
It will be interesting to see how higher mortgage rates and their impact on housing demand also impact construction spending.