U.S. construction spending fell by 0.6% month-over-month in August, much weaker than the 0.5% gain expected by consensus and the second straight monthly decline after three consecutive months of gains. It is still up 6.5% over last August, and comes after a revised 0.4% decline in July (was down 0.9%). Total private construction was down 0.5% over July, with residential and nonresidential construction spending up 0.9% and down 1.3%, respectively. Private construction spending is still up 12.1% over last August. Total public construction spending fell 0.8% over July, and is down 3.5% over last August. The report is likely to have a modest impact on markets focusing on news out of Europe today.