U.S. construction spending increased in June and the prior month's data was revised higher, boosted by spending in both single-family and multifamily housing projects.
The U.S. Census Bureau reported that construction spending rose 0.5%. Data for May was revised higher to show construction spending rising 1.1% instead of 0.9% as previously reported.
Construction spending advanced 3.5% on a year-on-year basis in June. Spending on single-family housing projects increased 2.1% in June. Spending on private construction projects increased 0.5%, with investment in residential construction rising 0.9% after rebounding 2.9% in the prior month. An acute shortage of single-family homes available for sale is driving construction despite the Federal Reserve recently raising rates to a 22-year hight.
