Construction Spending Flat in July

Washington, DC, Sept. 1–Construction spending was flat in July against forecasts for a 0.5 percent gain, government data showed on Thursday, following sharp revisions to previous months due to a change in methodology.

Construction outlays in July were reported at a seasonally adjusted annual rate of $1.099 trillion, unchanged from June, which was revised up from a previously reported $1.093 trillion. June spending was restated as a 0.6 percent decline from a 0.3 percent fall previously reported.

The Commerce Department said in a statement it had revised data back to January 2004 after deciding to revert to a smoothing process that had been suspended in its May annual revision.

In July, private construction spending rose 0.2 percent to an $856.2 billion annual rate. Private residential construction spending also advanced 0.2 percent to a $615.8 billion pace, while private nonresidential construction, an indicator of business confidence, increased 0.2 percent to $240.4 billion.

Total public construction declined 0.8 percent in July. Public residential outlays were down 1.9 percent while public spending on nonresidential building fell 0.8 percent.