Construction spending in the U.S. unexpectedly decreased in the month of June, the Commerce Department revealed in a report on Tuesday.
The Commerce Department said construction spending tumbled by 1.3 percent to an annual rate of $1.206 trillion in June from the revised May estimate of $1.222 trillion. Economists had expected spending to rise by 0.4 percent.
The unexpected decline in construction spending came amid a steep drop in spending on public construction, which plunged by 5.4 percent to a rate of $265.1 billion.
Spending on educational construction slumped by 5.5 percent to $67.5 billion, while spending on highway construction plummeted by 6.6 percent to $82.4 billion.
The report said spending on private construction also edged down by 0.1 percent to a rate of $940.7 billion in June.
While spending on non-residential construction inched up by 0.1 percent to $437.8 billion, spending on residential construction dipped by 0.2 percent to $502.9 billion.
Despite the monthly decrease, the Commerce Department said construction spending in June was up by 1.6 percent compared to the same month a year ago.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.