US Construction Spending July 2007

Construction activity plunged in July by the biggest amount in six months as spending on homes fell for a record 17th straight month. The Commerce Department reported Tuesday that construction spending dropped 0.4 percent in July, compared with June, the weakest showing since a 0.6 percent fall in January. It was a bigger drop than economists had been expecting and underscored the continued drag the severe slump in housing is having on building activity. Overall spending dropped to a seasonally adjusted annual rate of $1.169 trillion after having posted a 0.1 percent increase in June. Housing activity fell by 1.4 percent, more than double the 0.6 percent decline in June, and has now declined for a record 17 straight months as US home building suffers its worst slump in 16 years.

Here's the chart.