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Construction Spending Summer Report

Aug. 1, 2011

Construction spending likely showed a slight increase in June but the gain is not expected to be enough a May decline that pushed building activity near an 11-year low.

Construction activity likely edged up by 0.1 percent in June, according to economists surveyed by FactSet. The Commerce Department will release the new report at 10 a.m. Monday.

In May, construction spending dropped 0.6 percent to a seasonally adjusted annual rate of $757.9 billion. That pace was barely above the 11-year low hit in February. It is roughly half the $1.5 trillion in annual spending considered healthy by most economists.

Analysts believe it could be another four years before construction returns to healthy levels as the effects of a severe recession and collapse in home building linger.

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