New construction spending rose 0.7% in June.

The moderate gain reported by the Commerce Department came as a big increase in government projects partially offset a decline in private building activity. The June increase left construction spending at a seasonally adjusted annual rate of $342.8 billion and only partially erased the effects of a 0.8% decline in May. Private building edged down a slight 0.1% in June to an annual rate of $277.6 billion. It followed an even steeper 2% decline in May. Construction of residential buildings rose by 1.2%, while non-residential construction fell 2.7%.