Industry News

Residential real estate construction spending drops

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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...