Construction spending in the U.S. unexpectedly increased in June, boosted by gains in government programs that made up for declines in private residential and commercial projects.  The 0.1 percent increase in outlays followed a revised 1 percent drop in May that was larger than previously estimated, figures from the Commerce Department showed today in Washington. Homebuilding and sales are falling after the expiration of a government tax credit that boosted builder sentiment and brought starts to the highest level in more than a year in April. Demand will now depend on the state of the labor market and foreclosures.
 
Economists forecast construction spending would decline 0.5 percent, according to the median of 52 projections in a Bloomberg News survey. Estimates ranged from a drop of 2.1 percent to a 0.5 percent gain. Construction spending decreased 7.9 percent in the 12 months ended in June.