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Economic Figures

Home Construction Drops for Eighth Time

Wednesday, January 03, 2007 12:21:38 PM
By MARTIN CRUTSINGER

WASHINGTON (AP) - Construction activity showed further weakness as spending on homes dropped for a record eighth consecutive month.

The Commerce Department reported Wednesday that building activity edged down 0.2 percent in November to a seasonally adjusted annual rate of $1.18 trillion. That followed declines of 0.3 percent in October and 0.8 percent in September.

The weakness was led by a 1.6 percent plunge in home construction, which followed an even bigger 1.7 percent drop in October. Analysts believe home building will remain weak for several more months as builders struggle to work down a huge backlog of unsold homes.


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