Construction spending flatlined in July after being revised up for the month of June. The data suggest some minor upward revisions to overall investment in new structures during the second quarter, which won’t do much for an economy that posted miserable growth during the period.
The bulk of the weakness in July was concentrated in public sector construction. Infrastructure investment remains weak, with the only year-over-year gains occurring in health care. Even spending on highway repairs is down on a year-over-year basis despite efforts by Congress to boost highway spending.
Private sector spending held up better in July. Commercial real estate continued to post gains, even in the retail sector