Monday, August 1, 2011

U.S. June construction spending up 0.2%


First, here's "Marketwatch's" spin on the most recent news about construction activity:

U.S. June construction spending up 0.2%

10:07 am ET 08/01/2011 - MarketWatch Pulse News Bullet

WASHINGTON (MarketWatch) -- Outlays for U.S. construction projects rose 0.2% in June, the Commerce Department reported Monday. The gain was in line with expectations. Outlays are down 4.7% compared with a year earlier. Spending on private construction paced the increase, rising 0.8% compared with a 0.3% gain in May. Residential construction fell 0.3%. Non-residential construction rose 1.8%. Spending on public projects fell 0.7% after remaining flat in May. By itself, the data suggests little revision to second quarter GDP. The government assumed a 0.3% rise in construction spending in its initial estimate of second quarter growth. The economy grew at a sluggish 1.3% pace in the second quarter.

Second, here's "Reuters" spin on the most recent news about construction activity:

June construction spending hits 6-month high

WASHINGTON | Mon Aug 1, 2011 10:07am EDT

(Reuters) - Construction spending unexpectedly rose in June to touch a six-month high as an increase in private outlays offset a drop to a four-year low in public spending, a government report showed on Monday.

Construction spending advanced 0.2 percent to an annual rate of $772.32 billion, the Commerce Department said. May's construction spending was revised to a 0.3 percent increase rather than the previously reported 0.6 percent decline.

Economists polled by Reuters had expected construction spending to be flat in June.

Overall construction spending fell 4.7 percent from a year ago.

Private construction spending rose 0.8 percent to a seven-month high as an increase in nonresidential outlays offset a second straight month of declines in spending on residential projects.

Spending on public construction projects dropped 0.7 percent to $278.91 billion, the lowest level since March 2007. The decline reflected weak spending on federal projects, which dropped 2.2 percent. State and local government spending fell 0.6 percent to the lowest level since November 2006. (Reporting by Lucia Mutikani; Editing by Neil Stempleman)

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