WASHINGTON (AP) — U.S. construction spending declined in June for the second time in three months, as spending on government construction projects plunged by the largest amount in 15 years.
The Commerce Department reports that construction spending fell 1.3 percent in June, the biggest drop since a 1.8 decline in April. Spending rose a tiny 0.3 percent in May.
The only positive reading in June was in non-residential construction, which ticked up 0.1 percent.
While construction has weakened in recent months, economists believe the slowdown will be temporary. They forecast that construction, particularly home construction, will rebound amid low unemployment.
Home construction declined 0.2 percent, the third consecutive decrease in that category. Government spending fell 5.4 percent, the biggest drop since a 6 percent decline in March 2002.