Washington, DC, September 1, 2006--Spending on construction projects fell by 1.2% in July, dragged down by a drop in private residential construction, the Commerce Department said Friday.
Spending on home-building fell by 2.0% in July, the lowest rate since March 2005, another sign of the slowing housing market that has cooled the pace of the overall economy.
Economists were expecting construction spending to be flat in July.
Spending on construction projects was down in four of six categories tracked by the government.
