Nov 3 (Reuters) – U.S. construction spending fell for a second straight month in September as investment in both private and public projects declined, suggesting the third-quarter growth estimate could be revised lower.
Construction spending dropped 0.4 percent to an annual rate of $950.9 billion, the Commerce Department said on Monday. August’s construction outlays were revised to show a 0.5 percent fall instead of the previously reported 0.8 percent decline.
Economists polled by Reuters had forecast construction spending rising 0.7 percent. The government last week reported that the economy grew at a 3.5 percent annual pace. Growth in spending on both residential and nonresidential construction were reported to have slowed from April-June’s brisk rates.
In September, private construction spending dipped 0.1 percent to its lowest level since October last year as an increase in residential outlays was offset by a decline in spending on nonresidential projects. It was the fourth straight month of declines in private constructions spending.
Spending on public construction projects fell 1.3 percent in September, with state and local government investment declining 1.4 percent. Spending on construction projects by the federal government slipped 0.3 percent, falling for a third consecutive month.