Construction Spending Declines in July

Washington, DC, Sept. 1, 2011 -- Construction spending fell by the largest amount in six months in July with sharp reductions in spending on government building projects, according to the Commerce Department.

Construction spending fell 1.3% to an annual rate of $789.5 billion. That's 3.5% above the 11-year low in March but it is still only about half the $1.5 trillion that economists view as a healthy level for construction.

The number reflected a 2.1% drop in spending on government building projects, which fell to the slowest pace since late 2006. Spending on residential construction was down 1.4%,