By Xavier Fontdegloria

Construction spending in the U.S. fell in August for third straight month led by a decline in residential construction, reflecting the current headwinds of the housing market as mortgage rates increase.

Total construction spending fell 0.7% in August compared with July, its third consecutive monthly drop, according to data from the Commerce Department released Monday. In July, spending fell by 0.6% compared with a 0.4% drop previously estimated.

Economists polled by The Wall Street Journal expected construction spending to fall 0.2% in August.

Spending on private residential construction declined 0.9% on month, driven by a 2.9% drop in outlays on new single-family projects, the data showed.

Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com

(END) Dow Jones Newswires

October 03, 2022 10:46 ET (14:46 GMT)