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US construction spending posts smallest gain in 5 months; housing expands

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In this Wednesday, July 15, 2015 photo, Chris Esch, left, and Tony Ede, both of Conlon Construction Co., install a new window as Bryant Elementary School undergoes renovations, in Dubuque, Iowa. The Commerce Department reports on U.S. construction spending in June on Monday, Aug. 3, 2015. (Mike Burley/Telegraph Herald via AP) MANDATORY CREDIT

WASHINGTON – U.S. construction spending increased in June by the smallest amount in five months as a big drop in nonresidential building activity offset a third straight increase in home building.

The Commerce Department says construction spending edged up a slight 0.1 per cent in June following a 1.8 per cent increase in May and a 3.8 per cent rise in April. Even with the June slowdown, construction spending advanced to a seasonally adjusted annual rate of $1.06 trillion, the best pace in seven years.

Residential construction was up 0.4 per cent. But nonresidential building slipped 1.3 per cent in June, with the category that covers shopping centres falling 4.4 per cent. Spending on government building projects was up 1.6 per cent as a solid increase at the state and local levels offset a drop in federal projects.

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