SILVER SPRING, MD. — U.S. construction spending fell again in June, the fourth straight decline as the coronavirus outbreak continues to wreak havoc on the economy.
Spending on U.S. construction projects fell 0.7 per cent in June as both homebuilding and nonresidential activity declined, the Commerce Department said recently. Private and government spending on construction both also declined by the same 0.7 per cent figure.
The construction industry has been hammered by shutdowns forced by the coronavirus pandemic. As cases rise again in some parts of the country, there are concerns about further building declines in coming months.
Analysts had expected a turnaround in spending in June as many parts of the country reopened, but it did not happen. May’s number, however, was revised upward.
Homebuilding in June fell 1.5 per cent, dragged down by a 3.6 per cent drop in single-family home projects. That was somewhat offset by a three per cent rise in multi-family home building.
Nonresidential construction rose 0.2 per cent, led by increases in hospitals and clinics, manufacturing facilities and hotels.