US construction sector spending misses forecasts in August

Construction spending in the States was much weaker than expected in August as public sector outlays dropped sharply.

Total spending on construction shrank by 0.7% month-on-month to reach $1.142trn and by 0.3% when compared to year-ago levels, according to the Department of Commerce.

Economists had been expecting a rise of 0.3% in comparison to July.

Year-to-date, construction spending was running 4.9% ahead of 2015's levels.

Private sector construction spending slipped 0.3% on the month to $871.6bn, while that of the public sector fell by an outsized 2.0% month-on-month to $270.5bn.

Non-residential spending declined 0.4% month-on-month to $422.44bn, while residential spending was down 0.3% at $449.2bn.

In comparison to the same month one year ago, private spending was 2.7% higher whereas public expenditures had fallen by 8.8%.