WASHINGTON, Aug. 2 (UPI) -- The U.S. Commerce Department said Monday construction spending declined in June for the first time in five months as residential outlays tumbled.
Total construction spending fell 0.3 percent to a seasonally adjusted annual rate of $985.16 billion. The decline was the first since January and followed a revised 0.1 percent gain in construction spending in May, which had previously been estimated as a 0.3 percent rise.
Economists on Wall Street had expected spending to remain unchanged.
The report showed residential construction fell 0.6 percent to a seasonally adjusted annual rate of $534.45 billion after a 0.9 percent gain in May.
Outlays also fell for spending on roads and sewers, while there were gains for office and commercial construction spending.
Total private construction, which includes homes, fell 0.4 percent for the month after a 0.3 percent advance in May. Outlays were down for spending on health-care and educational facilities and up for lodging and recreation. Nonresidential private construction spending was flat.
Spending on public construction improved 0.2 percent in June after declining 0.3 percent in May. Federal government construction outlays fell by 0.1 percent while state and local spending went up by 0.2 percent.
