Construction Spending Falls Despite Non-Home Work

Washington, DC, June 2, 2008--Construction spending fell again in April, as home building continued a two-year decline while non-residential building rose to a record level.

The Commerce Department said that construction fell by 0.4 percent in April after having been down 0.6 percent in March. The last time construction increased was September.

Private home building dropped by 2.3 percent last month, the 26th consecutive monthly decline. Private non-residential construction, however, rose 1.6 percent, as construction of shopping centers, office buildings and hotels all rose significantly.

The decline pushed overall construction spending down to a seasonally adjusted annual rate of $1.12 trillion, 3.9 percent below the pace in April 2007.

Housing construction fell to an annual rate of $442.57 billion, 20.8 percent below the level of a year ago.