The value of construction put in place fell 0.3 percent in June after a downward revision to down 0.4 percent in May. Total construction spending is up 6.2 percent year-over-year. The monthly decline missed Econoday's consensus for a 0.2 percent rise.

Total spending on private construction fell 0.3 percent in June with public construction down 0.4 percent. Total residential construction fell 0.4 percent in June and nonresidential construction was down 0.2 percent.

Spending on private residential projects was down 0.3 percent in June with spending on single-family homes down 1.2 percent and multi-family units up a scant 0.1 percent. Spending on home improvements - private residential less spending on single- and multi-unit housing - was up 0.6 percent in June. If homebuilders are pulling back on new home construction, homeowners continue to reinvest in their existing properties. Private residential spending was up 7.3 percent compared to June 2023. Spending on public residential properties was down 2.0 percent in June but up 10.3 percent compared to a year ago.

Private nonresidential spending fell 0.1 percent in June, but up 4.2 percent compared to June 2023. The June dip was mostly due to declines of 0.6 percent and 0.8 percent in power and commercial buildings, respectively. Public nonresidential spending was down 0.4 percent in June mainly due to decreases of 0.9 in educational and 0.4 percent in highway and street projects.

Construction spending has missed Econoday's consensus each month so far this year (the last five reports). Spending on the month in June is expected to increase 0.2 percent versus May's 0.1 percent decline.

The dollar value of new construction activity on residential, non-residential, and public projects. Data are available in nominal and real (inflation-adjusted) dollars.

Construction spending has a direct bearing on stocks, bonds and commodities because it is a part of the economy that is affected by interest rates, business cash flow and even federal fiscal policy. In a more specific sense, trends in the construction data carry valuable clues for the stocks of home builders and large-scale construction contractors. Commodity prices such as lumber are also very sensitive to housing industry trends.

Businesses only put money into the construction of new factories or offices when they are confident that demand is strong enough to justify the expansion. The same goes for individuals making the investment in a home.

A portion of construction spending is related to government projects such as education buildings as well a highways and streets. While investors are more concerned with private construction spending, the government projects put money in the hands of laborers who then have more money to spend on goods and services.

On a technical note, construction outlays for private residential, private nonresidential, and government are key inputs into three components of GDP--residential investment, nonresidential structures investment, and the structures portion of government expenditures.

That is why construction spending is a good indicator of the economy's momentum.