U.S. construction spending unexpectedly declined in June, according to data released on Monday by the Commerce Department.
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The overall construction industry (including total private construction and total public construction) slid to a seasonally adjusted annual rate of $1.13 trillion this month, -0.6% below the revised rate of $1.14 trillion in May.
The June figure is 0.3% above the June 2015 estimate of $1,130.5 billion.
June construction spending was estimated at a seasonally adjusted annual rate of $1,133.5 billion, 0.6 percent below the revised May estimate of $1,140.9 billion, according to the U.S. Census Bureau of the Department of Commerce. Private residential construction spending edged up 0.1 percent in May.
The Institute for Supply Management says its manufacturing index last month read 52.6, the AP reported.
Prices of U.S. Treasuries pared losses after the data, while the dollar was stronger against a basket of currencies.
Spending on residential construction was almost unchanged, but spending on non-residential construction tumbled by 1.3 percent. June marked the third straight month of declines in outlays. Spending on renovations increased in June. US stocks were trading higher.
Nonresidential construction declined 1.3 percent, the biggest setback since December, while residential activity was unchanged in June.
Public consumption also fell 0.6% for the month with educational spending down 0.5% and highway construction falling 1.4%, maintaining unease over infrastructure spending.
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New single-family construction spending dropped to $239.6 billion, down -0.4% month-over-month, but marking an increase of 4.8% year-over-year. The ISM index stayed below 50 from October through February before turning positive in March.
