U.S. Construction Spending Falls Slightly in August

By Matt Grossman

U.S. spending on construction tracked slightly lower in August, reflecting a flatter pace of building as the economy cools.

August's construction spending slowed by 0.1% from a month earlier, falling to an annualized rate of $2.132 trillion. Economists polled by The Wall Street Journal had expected spending to stay flat month over month.

Compared with 12 months ago, the pace of construction spending in August was 4.1% higher.

The scale of construction activity and its sensitivity to interest rates and business sentiment make the sector an important gauge of the broader economy. Construction spending was boosted by the strong economic growth and low interest rates that followed the Covid-19 pandemic, but the pace has leveled in recent months as tighter Fed policy slows the economy.

Private construction spending fell by 0.2% from July, including a 0.3% fall in residential construction and a 0.1% fall for private nonresidential construction.

Public construction spending rose by 0.3%.

Write to Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

October 01, 2024 10:26 ET (14:26 GMT)

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