Industry News

Residential real estate construction spending drops

More money spent on schools, less on highways in July
Published on Sep 1, 2006

The rate of private residential construction spending dropped 3 percent in July compared to July 2005, the U.S. Census Bureau of the Department of Commerce announced today, and fell 2 percent since June 2006. Meanwhile, the seasonally adjusted annual rate of total construction spending reached $1.2 trillion in July, which is about 1.2 percent below the revised June estimate and about 5.1 percent above the July 2005 estimate. Non-residential construction spending was at a seasonally adjusted annual rate of $303.5 billion in July, which is 0.3 percent above the revised June estimate of $302.7 billion. The seasonally adjusted annual rate is calculated as a projection of a monthly total over a 12-month period, adjusted for seasonal fluctuations in construction activity. During the first seven months of this year, construction spending amounted to about $680.4 billion, which is 8 percent above the $630.2 billion for the same period in 2005. Spending on private construction was at a season...