Construction Spending Drops in July - TheStreet

Construction Spending Drops in July

The Commerce Department reports a surprise 0.6% decline for the month.
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Construction spending in the U.S. showed a surprise 0.6% decline in July, as spending in both residential and commercial construction tapered in the month, the Commerce Department reported Tuesday.

The decline in July follows a 0.3% increase in June and marks a sharper decline than the 0.4% drop economists were expecting. Residential construction fell 2.3%, and non-residential spending fell 0.7%.

The fresh data appeared to have little effect on the direction of homebuilder stocks early in the session Tuesday. Howewver, in recent afternoon trading they were mostly trading higher:

DR Horton

(DHI) - Get Report

was up 3% at $12.84,

Centex

(CTX)

was up 1.3% at $16.44,

Pulte

(PHM) - Get Report

was up 1.5% at $14.72, and

Toll Brothers

(TOL) - Get Report

was roughly flat at $24.89. The

SPDR S&P Homebuilders ETF

(XHB) - Get Report

was recently up 2.5% at $20.23.

This article was written by a staff member of TheStreet.com.