Construction spending declines in June

Construction spending decreased in June for the third month in a row, but most segments posted solid increases in the first half of 2016 compared to the same period in 2015, according to an analysis by the Associated General Contractors of America.

Association officials said spending appears to have leveled off after a strong early start to the year prompted by mild winter weather conditions in many parts of the country.

"The drop in construction spending over the past three months is probably more a reflection of the very strong gains posted early in the year than of cooling demand for construction," the association's chief economist Ken Simonson said in a statement. "Nearly every major segment had first-half gains of more than five percent compared with a year ago. Contractors, surveys and the media all continue to report plenty of projects are starting or will soon."