US Construction Spending falls in July - Wells Fargo

Analysts from Wells Fargo, point out that US Construction spending dropped again in July after a collapse of 1.4% in June, worse that first reported. They see the trend slowing. 

Key Quotes: 

“Construction spending declined again, down 0.6 percent in July, and June’s decline was worse than first thought. While these data are volatile and subject to revision, it is notable that nearly every non-residential category declined in both months.”

“Public and private spending both declined in July, the second drop for private construction but it is still up 4.1 percent over the year. Public outlays are down 5.6 percent from last July.”

“Spending on private residential remains a bright spot in an otherwise lackluster report. Private residential rose 0.8 percent in July, its third consecutive monthly gain.”

“The trend in construction outlays is clearly slowing, as tends to happen this late in an economic cycle. The trend in residential spending is likely to remain robust on solid demand for housing”