Construction Spending Lower Than Expected in July

Washington, DC, Sept 2, 2008--U.S. construction spending fell a greater-than-expected 0.6 percent in July as private home building hit ts lowest rate in more than seven years, according to the Commerce Department.

Spending on construction in July fell to a seasonally adjusted annual rate of $1.084 trillion, the lowest since February.

However, spending for June was revised to an increase of 0.3 percent from the 0.4 percent decline originally reported. Analysts were expecting a 0.4 percent decrease in construction spending in July from June's initial reading.

Private home building was off 2.3 percent in July, the 16th consecutive decrease, bringing private residential construction to the lowest level since March 2001.

Public construction, including state and local as well as federal building, set record highs in signs of strength for the sector.