AP News

News Summary: US construction spending fell

BUILDING DOWN: U.S. construction spending fell 0.9 percent in July compared to June, the biggest setback in a year.

LACK OF IMPROVEMENT: A large part of the weakness came from a sizable 5.5 percent decline in spending on home improvement projects. That offset further gains in construction of single-family homes and apartments.

BETTER NEIGHBORHOOD: Economists believe that despite the setback in July, the trend for housing is on the upswing, citing improved sales of new and existing homes and increasing home prices. But overall construction is still roughly half of what it should be for a healthy building industry.

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