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June Construction Spending Improves Despite Monthly Dip08-12-13 | News
June Construction Spending Improves Despite Monthly Dip





Total construction outlays in June were $883.9 billion, down 0.6 percent from May but up 3.3 percent over June 2012's level. Despite the dip, spending reached the second-highest level since August 2009.
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While June is typically a growth month, spending on residential and nonresidential construction slowed, and public construction, on the decline for several months, accelerated its downward trend.

Private residential spending was flat for the month, and 18 percent higher than in June 2012. New single-family construction slid 0.8 percent, but was 28 percent above the year-ago mark; new multifamily spending fell 3.3 percent but gained 41 percent year-over-year. Private nonresidential spending slipped 0.9 percent in June but was up 1.4 percent year-over-year. Public construction spending decreased 1.1 percent for the month and 9.3 percent over 12 months, to the lowest levels since 2006.

"New single-family and multifamily construction both had rare slowdowns in June, private nonresidential construction remained stuck in neutral as it has all year, and the long slump in public construction worsened," said Ken Simonson, the Associated General Contractors of America's chief economist. "For the rest of 2013, private construction appears likely to grow again but public spending is showing no signs of a recovery."







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