July Construction Spending Off 0.4%

Washington, DC, September 4, 2007—Construction spending dropped 0.4% in July to an annual rate of $1.17 trillion, following a revised gain in June of 0.1%, according to the Commerce Department. July’s decline was the first since January.

Private residential construction during the month was off for its 17th consecutive month reaching an annual rate of $534 billion, the lowest since February 2004.

Private nonresidential construction rose 0.4% to a $346 billion annual rate, a record high.

Public construction increased 0.7% to $289 billion and its highest level on record. Spending by the federal government slipped 0.4% to $19.4 billion.

Analysts were expecting construction spending to remain unchanged in July. The seasonally adjusted annual rate of construction fell to $1.17 trillion while private construction declined 0.7% to an annual rate of $880 billion, the lowest level since May 2005.

Compared to this time last year, construction spending is off 2%. During the first seven months of 2007, construction spending was 3.4% below the same period in 2006.