June construction activity posts slight gain as government building offsets weakness elsewhere

June construction activity rises 0.1 percent

WASHINGTON — Construction spending edged up in June but all the strength came from the government. Private sector activity in both housing and nonresidential projects fell.

The Commerce Department says that construction spending rose 0.1 percent in June. While that was better than the decline economists had forecast, the government sharply revised down its estimate of activity in May to show a drop of 1 percent rather than the 0.2 percent dip initially reported.

The lackluster performance for construction was the latest indicator that the overall economy slowed in the spring, raising worries about the durabilty of the recovery that began a year ago.