Construction spending drops for seventh time - News, Weather, Sports, Toledo, OH

Construction spending drops for seventh time

By Martin Crutsinger - AP Economics Writer

Posted by Lisa Strawbridge - email

WASHINGTON (AP) - Construction activity fell for a seventh consecutive month as spending on both residential and commercial projects declined, a worrisome sign that lingering troubles in construction will act as a drag on the overall economic recovery.

The Commerce Department said Monday that construction spending dropped 0.6 percent in November, a bigger decline than the 0.4 percent fall that economists had been expecting. The weakness was widespread with spending on housing falling by the largest amount since June and non-residential building dipping for an eighth consecutive month.

While the overall economy began growing again this past summer, the worry is that weakness in such areas as construction will dim prospects for a recovery strong enough to reduce double-digit unemployment.

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