Construction Spending in U.S. Unexpectedly Declined in June

Construction spending in the U.S. unexpectedly dropped in June for the first time in three months, easing off an almost four-year high amid government cutbacks.

Outlays decreased 0.6 percent to a $883.9 billion annual rate after a 1.3 percent increase in May that was almost three times larger than previously estimated, the Commerce Department reported today in Washington. The median forecast of 49 economists surveyed by Bloomberg called for a 0.4 percent rise. Government outlays slumped to the lowest level since 2006.