The Commerce Department reports U.S. construction spending rose by a percent in June. However, an increase in private projects was offset by a fall in public sector building. Construction spending did increase by 8.2% since 2020.
Spending on private construction projects climbed 0.4%, with outlays on residential projects increasing 1.1%. Single-family homebuilding spending surged 1.8%, after outlays on residential projects rose 0.3% in May.
Although demand for housing remains strong, a rise in the cost of building materials, especially lumber, are causing contractors to slow projects down. This is causing housing prices to rise because of supply and demand.
Business spending on non-residential structures fell in the second quarter led by declines in commercial and healthcare structures.
Spending on public construction projects dropped 1.2% in June, after declining 0.8% in May.
