Construction spending in US drops by 0.3 percent in July


(MENAFN) US construction spending experienced a decline of 0.3 percent in July, reaching a total of USD2,162.7 billion, according to data released by the Commerce Department on Tuesday. This decrease came as a disappointment to market expectations, which had anticipated a slight increase of 0.1 percent for the month. The drop in construction spending reflects broader trends within the sector, which is a key indicator of economic health and activity in the construction industry.

For June, the figures were revised upward, showing a total spending of USD2,169 billion, up from the initially reported USD2,148.4 billion. Despite the revision, this still represented a monthly decline of 0.3 percent. The downward adjustment highlights a slowdown in construction activity, with both the revised June figure and the July data suggesting a weakening in sector performance.

On an annual basis, however, construction spending in July showed a significant increase compared to the same month in the previous year. The July figure was 6.7 percent higher than July 2023, when construction spending stood at USD2,027.4 billion. This year-over-year growth underscores a continued expansion in the sector despite the recent monthly decline.

Overall, while the annual comparison indicates a positive trend in construction spending, the recent monthly decline points to potential challenges and shifts in the construction market. The deviation from expected increases and the downward revisions for June suggest that market dynamics and economic conditions may be impacting construction sector performance.

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