Ahead Of The Bell: Construction Spending

The housing industry had lobbied for the extension, arguing that a tentative rebound from a prolonged slump in housing could be derailed without it.

The strength in housing in August helped offset weakness in nonresidential construction, which posted a fourth consecutive decline. This sector is being hurt by a credit squeeze as banks, struggling through the worst financial crisis since the 1930s, have tightened up on loan standards in reaction to soaring mortgage defaults in the commercial sector.

Homebuilder Ryland Group Inc. reported last week that its third-quarter loss narrowed on smaller losses on its home construction business. NVR Inc., a homebuilding and mortgage company, said its profits doubled in the third quarter, helped by a 13 percent rise in new home orders.

The housing sector is struggling to emerge from the worst slump in years, a period of falling sales and prices following a housing boom earlier in the decade.

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