Construction spending slips but homebuilding rises
Construction spending in July totaled $958 billion at a seasonally adjusted annual rate (SAAR), 0.2% less than the downwardly revised June total and 10.5% less than in July 2008, the Census Bureau reported today.
Private nonresidential spending fell for the fifth month in a row, slumping 1.2% in July, after tumbling 2.2% in June. Losses were most acute for developer-financed categories: lodging, -8.4% for the month and -35% compared to July 2008; office, -1.7% and -26%; and commercial (retail, wholesale and farm), -1.7% and -35%. The only private categories that outpaced the July 2008 level were manufacturing construction, up 0.9% for the month and 47% over 12 months; and power construction, down 0.8% in July but up 10% from a year earlier.