Comment on Construction spending down 1.3 percent in July

Construction spending down 1.3 percent in July

share: digg facebook twitter Construction spending fell 1.3 percent to a seasonally adjusted annual rate of $789.5 billion, the Commerce Department reported Thursday. The 0.4 percent drop in non-residential spending, to an annual rate of $266.4 billion, reflected declines in spending on hotels, recreation facilities and factories. State and local governments have been forced to cut back because of severe budget problems while the federal government has come under pressure from a drive to get control of soaring budget deficits. Economists believe home prices will fall further once banks resume millions of foreclosures, which have been delayed because of a government investigation into mortgage lending practices.

 

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