August Construction Spending Stays Steady
October 1, 2008
spending during August 2008 remained steady, a better outcome
than the 0.5 percent fall that economists expected, according to The
Associated Press. Surprising was the 0.3 percent rise in residential
activity, the first increase in housing activity since March 2007, and the
second monthly rise for housing in the past 29 months.
the Commerce Department’s Census Bureau revised July activity to show a much
bigger drop of 1.4 percent, compared to the 0.6 percent decline initially
0.3 percent increase in housing left spending in this area at a seasonally
adjusted annual rate of $343.6 billion. The gain was offset by a 0.8 percent
drop in spending on nonresidential projects, which fell to $415.95 billion.
The concern, the
AP reported, is that the severe credit crunch will cause
banks to shut off lending for commercial projects, further deepening the
construction spending in manufacturing (+61.5 percent), lodging (+29.3
percent), power (+26.8 percent) and public safety (+22.5 percent) all increased
from August 2007.
the first eight months of this year, construction spending amounted to $713.5
billion, 5.9 percent below the $758.1 billion for the same period in 2007.