Construction spending in the U.S. fell in August for the third straight month as the housing market dips deeper into a recession.
Total construction spending dropped by seven-tenths of a percentage point compared with the prior month, data from the Commerce Department showed Monday. That followed a 0.6 percent decline in July.
Economists had expected a much smaller decline. The median forecast among analysts polled by Econoday was for a 0.1 percent decrease in construction spending.
Residential construction spending fell 0.9 percent. Spending on single-family homes dropped 2.9 percent. Multifamily construction spending rose 0.4 percent.
The numbers are not adjusted for inflation. With prices of labors and materials still rising, the real decline in construction activity was likely sharper.
Spending on nonresidential private construction rose one-tenth of a percentage point. Spending by governments—federal, state, and local—fell by 0.8 percent.