Industry News

Home construction spending falls for 17th month

July's spending rate is lowest since February 2004

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The rate of residential construction spending declined for the 17th straight month in July and hit its lowest level since February 2004, according to a U.S. Census Bureau of the Department of Commerce report released today. Spending for private residential construction reached a seasonally adjusted annual rate of about $534 billion in July, down 16.1 percent compared to July 2006. This rate is a projection of a monthly spending total over a 12-month period, adjusted to account for seasonal fluctuations in construction activity. Residential construction spending peaked at a rate of $696 billion in February 2006 and has declined every month since. The seasonally adjusted annual rate of spending for all types of construction was estimated at $1.17 trillion in July, down 2 percent compared to July 2006. Construction spending totaled $657.7 billion in the first seven months of the year, down 3.4 percent compared to $680.9 billion during the same period last year. The estimated rate of publi...