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Construction Spending Fell in June Reflecting Slowdown in Government Projects

(CN) — Construction spending declined in June for the second time in three months, as spending on government construction dropped by the largest percentage since 2002.

The Commerce Department said Tuesday construction spending fell 1.3 percent in June. This is the second marked decline in three months.

In April, construction spending dropped 1.8 percent. It rebounded a minuscule 0.3 percent in May.

Looking at June on a more granular level, home construction declined 0.2 percent, the third consecutive decrease in that category.

Government spending fell 5.4 percent, the biggest drop since a 6 percent decline in March 2002.

If there was a bright spot in Tuesday's report, it was that spending in non-residential construction rose 0.1 percent.

This followed a 0.6 percent increase in May.

The bump in non-residential construction was buoyed by a healthy jump in office construction, which rose 2.9 percent and offset a 0.4 percent decline in the category that includes shopping centers and strip malls.

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