WASHINGTON, Sept 1 (Reuters) - U.S. construction spending unexpectedly fell in July, hitting the lowest level in nearly three years as higher mortgage rates weighed on single-family homebuilding.
The Commerce Department's Census Bureau said on Tuesday that construction spending dropped 0.5% to $2.158 trillion, the lowest level since October 2023. Data for June was revised higher to show construction spending unchanged instead of dipping 0.1%, as previously reported. Economists polled by Reuters had forecast construction spending would be unchanged in July.
Construction spending plunged 3.8% on a year-over-year basis in July. Spending on private construction projects decreased 0.5% after easing 0.1% in June. Investment in residential construction tumbled 1.3%. Spending on single-family housing projects dropped 3.2%. On a year-over-year basis, it plummeted 6.5% in July.
Homebuilding is also being squeezed by a glut of unsold single-family houses. The average rate on the popular 30-year fixed-rate mortgage is hovering near a one-year high of 6.66%, data from mortgage finance agency Freddie Mac showed. It has surged by almost 70 basis points since the U.S.-Israeli war with Iran started in late February.
Spending on multi-family housing units, which account for a small share of the housing market, rose 0.2% in July.
#spending #family
The Commerce Department's Census Bureau said on Tuesday that construction spending dropped 0.5% to $2.158 trillion, the lowest level since October 2023. Data for June was revised higher to show construction spending unchanged instead of dipping 0.1%, as previously reported. Economists polled by Reuters had forecast construction spending would be unchanged in July.
Construction spending plunged 3.8% on a year-over-year basis in July. Spending on private construction projects decreased 0.5% after easing 0.1% in June. Investment in residential construction tumbled 1.3%. Spending on single-family housing projects dropped 3.2%. On a year-over-year basis, it plummeted 6.5% in July.
Homebuilding is also being squeezed by a glut of unsold single-family houses. The average rate on the popular 30-year fixed-rate mortgage is hovering near a one-year high of 6.66%, data from mortgage finance agency Freddie Mac showed. It has surged by almost 70 basis points since the U.S.-Israeli war with Iran started in late February.
Spending on multi-family housing units, which account for a small share of the housing market, rose 0.2% in July.
#spending #family
6 days ago
