US construction spending fell 1.3 percent from a month earlier at a seasonally adjusted annual rate of USD 1.29 trillion in June of 2019, following a downwardly revised 0.5 percent decline in the previous month and against market expectations of a 0.5 percent rise. It was the largest drop since November last year. Spending on private construction tumbled 0.4 percent to a more than 1-1/2-year low, after a 0.3 percent decrease in May, mainly due to a 0.5 percent fall in residential projects. Also, investment in public construction slumped 3.7 percent, the largest drop since March of 2002, after decreasing 1.2 percent in May, as spending on state and local government construction projects fell 4.1 percent, also the biggest decline since March 2002. Construction Spending in the United States averaged 0.44 percent from 1964 until 2019, reaching an all time high of 5.90 percent in April of 1978 and a record low of -4.80 percent in February of 1975.
Construction Spending in the United States is expected to be 0.80 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Construction Spending in the United States to stand at 0.30 in 12 months time. In the long-term, the United States Construction Spending is projected to trend around 0.40 percent in 2020, according to our econometric models.