I repaced the diverter spout and the water stills comes out of the faucet in tub taking water away from shower head. Just as much water comes from faucet and shower. Getting this problem taken care of might lower my water bill.
What type of pipe is serving the tubspout? Copper/galvanized? If it is a copper stubout with no threads and your using a compression type/slip on spout w/ set screw the copper may be too long and causing this problem. Stubout should be no greater than 2" from finish wall. Otherwise it may be a problem with your diverter.