Home >> News >> Data >> Construction Spending Falls in July, Shy of Estimates
Print This Post Print This Post

Construction Spending Falls in July, Shy of Estimates

Private and public construction spending fell off in July, shy of initial estimates, with private nonresidential spending worse for the wear if trends persist, analysts say.

[IMAGE] [COLUMN_BREAK]

Analysts with ""IHS Insight"":http://www.ihs.com/products/global-insight/index.aspx shared their concerns on Tuesday with commentary detailing the latest spending numbers from the ""Census Bureau"":http://www.census.gov/.

According to the report, construction spending declined by 0.9 percent in July, while spending went up 9.3 percent year-over-year.

Public construction declined by 0.4 percent, with overall spending falling 0.2 percent. Private construction fell 1.2 percent, just as residential and nonresidential spending dovetailed by 1.6 percent and 0.9 percent, respectively, the report said.

Not far behind, private residential construction fell by 1.6 percent, with residential spending on its way to 1.6 percent, according to the report. Single-family homes ticked up 1.5 percent, while multifamily spending slid to 2.8 percent.

IHS Global Insight analysts Patrick Newport and Michelle Valverde called the spending slowdown a ""disappointing report.""

Citing an Architecture Billings Index, the two also noted that private nonresidential construction may ""[head] for rough seas in nine to twelve months,"" adding that ""a slowdown in this category is much more likely than a contraction.""

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.
x

Check Also

DS5: Experts Share Insights on Loss Mitigation, Servicers’ Processes

The newest episode of DS5: Inside the Industry features Dave Worrall, President of LoanCare, and Mike Sullivan, Director of Marketing and Client Relations, Codilis and Associates PC.

GET THE NEWS YOU NEED, WHEN YOU NEED IT.

With daily content from MReport, you’ll never miss another important headline in originations, lending, or servicing. Subscribe to MDaily to begin receiving a complimentary daily email containing the top mortgage news and market information.