A vapor recovery nozzle includes a spout construction comprising an outer aluminum tube and an inner nylon tube. The distal ends of the tubes are joined so that the inner tube defines a central fuel passage and, in combination with the outer tube, defines a generally annular vapor return passage. A distal end portion of the outer tube has a reduced wall thickness and its inner end is expanded to mount a locator ring thereon. The spout assembly is telescoped into an adapter that connects the fuel and vapor passages to corresponding passages in the nozzle body. A spout nut threads into the nozzle body and engages the locator ring to mount the spout on the nozzle. The outer spout tube is formed by lathe operations which include turning a fracture groove adjacent its inner end, and, thereafter bending the tube to angle the distal end portion of the tube downwardly from its inner end. A second embodiment teaches the use of structural, synthetic resins in forming the outer spout tube. In an alternate embodiment the outer spout tube is compositely formed an outer end portion that provides increased strength for the that portion, where a thin wall tube is employed.