Construction Spending Dips in July

Nonresidential Rise Not Enough to Offset Residential Decline

Source: Economics Group of Wells Fargo Bank, N.A.Summary Total Spending Dragged Down by the Residential Sector

  • Total construction spending declined 0.4% during July, the second straight monthly drop.
  • Upward revisions to overall spending in June takes some sting out of July’s larger than expected drop. Total spending fell 0.5% in June, slightly better than the 1.1% decline published in the first estimate.
  • Residential spending fell 1.5% during the month, with single-family (-4.0%) and multifamily (-0.6%) outlays declining in July. Home improvement spending rose 1.5%. Total residential spending is still up 14.0% over the year, however the drop-off in home buying brought on by higher mortgage rates is weighing heavily on the residential sector.