Industry News

Home construction spending drops 18% in 2007

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The rate of spending on residential construction fell for the 22nd consecutive month in December to the lowest level in almost five years, and spending for the full year in 2007 dropped 18.3 percent compared to 2006, the U.S. Census Bureau reported today. The seasonally adjusted annual rate of spending on nonpublic residential construction projects slid to about $469.1 billion in December, down 20.4 percent compared to December 2006. It was the lowest level since the May 2003 rate of $456.5 billion and represents a 33.6 percent decline from a peak of $696 billion in February 2006. The seasonally adjusted annual rate is a projection of a monthly spending total over a 12-month period, adjusted to account for seasonal fluctuations in construction activity. Total construction spending dropped to a rate of about $1.14 trillion in December, which is down 2.3 percent from December 2006 and is the lowest rate since $1.13 trillion in July 2005. Total construction spending in 2007 wa...