Construction spending hits 7-year low

Construction spending just hit a 7-year low. The U.S. Census Bureau of the Department of Commerce announced that construction spending during July 2008 was estimated at a seasonally adjusted annual rate of $1,084.4 billion, 0.6 percent (±1.4 percent) below the revised June estimate of $1,091.3 billion. The July figure is 4.8 percent (±2.1 percent) below the July 2007 estimate of $1,139.4 billion. During the first 7 months of this year, construction spending amounted to $614.2 billion, 5.4 percent (±1.6 percent) below the $649.5 billion for the same period in 2007.

Spending on private construction was at a seasonally adjusted annual rate of $774.6 billion, 1.4 percent (±1.1 percent) below the revised June estimate of $785.9 billion. Residential construction was at a seasonally adjusted annual rate of $357.8 billion in July, 2.3 percent (±1.3 percent) below the revised June estimate of $366.1 billion. Nonresidential construction was at a seasonally adjusted annual rate of $416.8 billion in July, 0.7 percent (±1.1 percent below the revised June estimate of $419.8 billion.

In July, the estimated seasonally adjusted annual rate of public construction spending was $309.7 billion, 1.4 percent (±2.2 percent) above the revised June estimate of $305.4 billion. Educational construction was at a seasonally adjusted annual rate of $87.4 billion, 2.5 percent (±4.3 percent) above the revised June estimate of $85.3 billion. Highway construction was at a seasonally adjusted annual rate of $76.0 billion, nearly the same as (±5.6 percent) the revised June estimate of $76.0 billion. Your comment?