The Commerce Department released a report on Tuesday indicating an unexpected decrease in U.S. construction spending for the month of July.
According to the report, construction spending declined by 0.3 percent to an annual rate of $2.163 trillion in July. Revised data for June showed spending was almost unchanged, standing at an annual rate of $2.169 trillion.
Economists had anticipated construction spending to remain unchanged compared to the previously reported 0.3 percent decrease for the preceding month.
The surprising downturn in total construction spending was driven by a 0.4 percent decrease in spending on private construction, which fell to an annual rate of $1.679 trillion.
Specifically, residential construction spending dropped by 0.4 percent to an annual rate of $941.6 billion, while non-residential construction spending also decreased by 0.4 percent, reaching an annual rate of $737.2 billion.
Conversely, the Commerce Department noted a slight increase in public construction spending, which edged up by 0.1 percent to an annual rate of $484.0 billion.
