US Construction Spending in July Extends Decline

Analysts say that most private construction categories struggled to maintain momentum during the first half of the year.

Construction workers build the roof of a house in Alhambra, Calif., on Sept. 23, 2024. Frederic J. Brown/AFP via Getty Images

U.S. construction spending dipped again in July, pulled down by weak investment in private nonresidential and multifamily projects amid high mortgage rates and elevated material costs.

The Commerce Department’s Census Bureau said on Tuesday that total construction outlays slipped by 0.1 percent to a seasonally adjusted annual rate of $2.14 trillion, following a revised 0.4 percent drop in June. Compared with a year earlier, spending was down by 2.8 percent in July.