Industry News

Residential construction spending takes a hit

Money spent on homes down $106 billion from last year

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Spending on U.S. residential construction continued to decline in June, as the seasonally adjusted annual construction rate fell 16.4 percent from a year ago, the Census Bureau reported today. The value of home construction put in place last month registered a rate of $544.3 billion, compared with $650.9 billion the same time last year. Compared to May, the rate was down 0.7 percent, marking the 16th consecutive monthly decline. This rate is a projection of a monthly total over a 12-month period, adjusted for seasonal variations in construction activity. For all types of construction, the seasonally adjusted annual rate dropped 2.4 percent to $1.17 trillion in June, compared with $1.2 trillion in June 2006. Compared to May, the rate dipped just 0.3 percent from that month's $1.18 trillion rate, the report found. During the first six months of this year, total construction spending amounted to $550 billion, off 3.5 percent from the $570.1 billion rate for the same period in 2006. F...