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 public construction spending was $289 billion in July, up 12.7 percent compared to July 2006. Educational construction spending reached a seasonally adjusted annual rate of $83 billion, up 14.7 percent compared to July 2006. Highway construction spending was at a seasonally adjusted annual rate of $74.3 billion, down 0.3 percent compared to July 2006, and the rate of health care construction spending increased 36.6 percent, to $8.58 billion.

The agencies note that month-to-month changes in seasonally adjusted statistics often show irregular movements, and it may take two months to establish an underlying trend for total construction and up to eight months for specific categories of construction.

Statistics are estimated from several sources and surveys and are subject to sampling variability as well as nonsampling error including bias and variance from response, nonreporting and undercoverage.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
We are less than 1 week away from Inman Connect! Get your ticket for $99 before prices go up next week.GET YOUR TICKET×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription