Economic Indicators

Single-family homebuilding weighs on U.S. construction spending in July

2022.09.01 17:43

Single-family homebuilding weighs on U.S. construction spending in July
FILE PHOTO: A home under construction stands behind a “sold” sign in a new development in York County, South Carolina, U.S., February 29, 2020. REUTERS/Lucas Jackson/File Photo

WASHINGTON(Reuters) – U.S. construction spending declined further in July as rising mortgage rates weighed on single-family homebuilding, offsetting a rebound in outlays on public projects.

The Commerce Department said on Thursday that construction spending fell 0.4% in July after decreasing 0.5% in June. July’s decline was in line with economists’ expectations. Construction spending increased 8.5% on a year-on-year basis in July.

Spending on private construction projects dropped 0.8% after decreasing 0.7% in June. Investment in residential construction tumbled 1.5%, with spending on single-family projects plunging 4.0%. Outlays on multi-family housing projects slipped 0.6%.

Rising mortgage rates have combined with higher home prices to reduce affordability, especially for first-time buyers, putting a damper on the housing market.

Residential spending contracted at its steepest pace in two years in the second quarter. That contributed to gross domestic product declining at an annualized rate of 0.6% last quarter after shrinking at a 1.6% pace in the January-March quarter.

The Federal Reserve has hiked its policy rate by 225 basis points since March.

Investment in private non-residential structures like gas and oil well drilling gained 0.4% in July. Outlays on non-residential structures have declined for five straight quarters.

Spending on public construction projects surged 1.5% after edging up 0.1% in June. Investment in state and local government construction projects jumped 1.6%, while federal government gained 0.1%.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 60,875.31 2.26%
ethereum
Ethereum (ETH) $ 2,395.36 1.87%
tether
Tether (USDT) $ 0.999394 0.02%
bnb
BNB (BNB) $ 570.50 1.23%
solana
Solana (SOL) $ 140.06 2.24%
usd-coin
USDC (USDC) $ 1.00 0.05%
xrp
XRP (XRP) $ 0.527751 0.93%
staked-ether
Lido Staked Ether (STETH) $ 2,395.32 1.95%
dogecoin
Dogecoin (DOGE) $ 0.108042 0.48%
tron
TRON (TRX) $ 0.15941 0.18%
the-open-network
Toncoin (TON) $ 5.09 2.06%
cardano
Cardano (ADA) $ 0.339807 1.65%
avalanche-2
Avalanche (AVAX) $ 26.00 1.06%
shiba-inu
Shiba Inu (SHIB) $ 0.000017 2.15%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,828.87 1.89%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 60,750.28 2.35%
weth
WETH (WETH) $ 2,396.00 1.89%
chainlink
Chainlink (LINK) $ 10.65 1.93%
bitcoin-cash
Bitcoin Cash (BCH) $ 322.35 1.65%
dai
Dai (DAI) $ 1.00 0.00%
polkadot
Polkadot (DOT) $ 4.06 1.24%
uniswap
Uniswap (UNI) $ 7.46 4.91%
leo-token
LEO Token (LEO) $ 6.04 1.10%
sui
Sui (SUI) $ 1.87 4.07%
near
NEAR Protocol (NEAR) $ 4.64 5.43%
litecoin
Litecoin (LTC) $ 64.82 1.07%
bittensor
Bittensor (TAO) $ 580.80 0.79%
aptos
Aptos (APT) $ 8.44 9.06%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,515.09 1.94%
pepe
Pepe (PEPE) $ 0.000009 3.40%
internet-computer
Internet Computer (ICP) $ 7.92 1.13%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.35 5.82%
kaspa
Kaspa (KAS) $ 0.132186 2.76%
first-digital-usd
First Digital USD (FDUSD) $ 1.00 0.11%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.367843 2.74%
monero
Monero (XMR) $ 150.86 1.54%
ethereum-classic
Ethereum Classic (ETC) $ 18.26 0.68%
stellar
Stellar (XLM) $ 0.089969 0.19%
blockstack
Stacks (STX) $ 1.68 2.68%
okb
OKB (OKB) $ 41.13 4.50%
ethena-usde
Ethena USDe (USDE) $ 0.998648 0.05%
dogwifcoin
dogwifhat (WIF) $ 2.34 4.39%
immutable-x
Immutable (IMX) $ 1.40 2.83%
aave
Aave (AAVE) $ 141.21 0.15%
filecoin
Filecoin (FIL) $ 3.52 3.35%
crypto-com-chain
Cronos (CRO) $ 0.075576 1.03%
render-token
Render (RENDER) $ 5.14 3.11%
optimism
Optimism (OP) $ 1.54 5.74%
mantle
Mantle (MNT) $ 0.589447 2.56%
injective-protocol
Injective (INJ) $ 19.54 1.16%