Construction Spending in U.S. Fell Twice as Much as Forecast

Construction spending in July fell twice as much as forecast, led by a slump in homebuilding that will depress U.S. economic growth.

The 1 percent drop brought spending to $805.2 billion, the lowest level in a decade, after a revised 0.8 percent drop in June that wiped out a previously estimated gain, Commerce Department figures showed today in Washington. Spending on federal government projects fell by the most in a year.