Construction spending slows slightly during July

Spending on construction of new homes slowed during July.A recent report from the Department of Commerce revealed construction spending settled at a strong rate during July, however, it was slightly behind the pace set in June.Overall, the report showed spending reached a seasonally adjusted annual rate of $789.5 billion, which is 1.3 percent below June's estimate of $799.8 billion. However, the pace is 0.1 percent ahead of the estimate from July 2010, when spending settled at $789 billion. Year-to-date, $435.5 billion has been spent on construction, which is 3.5 percent behind the pace set at the same time last year.Spending on private construction settled at an adjusted rate of $514.5 billion during the month, which is 0.9 percent below June's revised estimate of $519 billion. Residential construction reached an adjusted rate of $248.1 billion during July, which is 1.4 percent below the $251.7-billion adjusted pace set in June.Public construction spending also lagged behind the pace set the previous month, reaching an adjusted rate of $275 billion, which is 2.7 percent below June's estimate.The Houston real estate may benefit from continued residential construction spending, as new homes add an average of three jobs to local economies, reports have shown. With recent public sector cuts, the region could use additional jobs.Courtesy of 2M Realty News

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