Construction in the U.S. Declines Most Since January

[Purveyor]

Source: Bloomberg News

Sept. 4 (Bloomberg) -- Spending on U.S. construction projects unexpectedly fell in July by the most since January, indicating that the homebuilding slump continued to hold back economic growth at the start of the third quarter.

The 0.4 percent decline followed a 0.1 percent gain the prior month, the Commerce Department said today in Washington. Figures for June were previously reported as a drop.

Homebuilders are scaling back to try to trim the glut of unsold residential properties even as companies are still adding offices and factories. The downturn may steepen as lenders make it tougher and more expensive to get financing following the sell-off in credit markets in August.

``We're going to see another leg down, mostly because of the pain the big builders are taking,'' said Ken Mayland, president of ClearView Economics LLC in Pepper Pike, Ohio, who had forecast a decline. ``The full effects of the market volatility really haven't found their way into housing yet. The August declines may be even bigger.''



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aM2SIdNiUS_A&refer=home

[lapfog_1]

1. "unexpectedly"... really???

Gee, I've been "expecting" the housing/building meltdown for nearly 3 years.

Much like 8 years ago when I saw funded business plans for really brain dead internet retail businesses (funded with $50M for a cosmetics retailer for example)... that's when I thought the end was near for the "internet bubble" (Wired magazine had just published a cover story called "The Long Boom" - oops).

[whistle]

2. Yep, all the economic growth is in military spending and waste

[Eurobabe]

3. Oh you mean the big builders that are foisting shit

housing on the American people?

I am so surprised that most of their trash passes home inspections.