Construction Spending Still Stuck in the Mud

Builders cut back on spending by the largest amount in six months in July with sharp reductions in outlays for government building projects.

Construction spending fell 1.3 percent to a seasonally adjusted annual rate of $789.5 billion, the Commerce Department reported Thursday. That is 3.5 percent above an 11-year low hit in March, but it is still only about half the $1.5 trillion that economists view as a healthy level for construction. Economists believe that it could take four years before construction activity returns to more normal levels.