Construction Spending Falls for First Time in Four Months

Construction spending fell 1.3% in July, the most in six months, as spending on government projects declined, the Commerce Department said Thursday.

The downturn followed three straight gains, including June’s revised 1.6% increase that was well above the 0.2% gain originally reported.

July’s decline was in contrast to economists’ median forecast of a 0.2% increase, Bloomberg reported.

Public construction spending fell 2.1%, as state and local projects decreased by 1.9%. Private construction spending fell 0.9%.

Homebuilding outlays fell 1.4%, reflecting a 2.4% decrease in home improvements, Bloomberg reported.

Construction spending can boost demand for trucking services because spending increases the number of shipments of goods and building materials.