
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, October 4, 1994                   TAG: 9410050023
SECTION: BUSINESS                    PAGE: C7   EDITION: METRO 
SOURCE: ASSOCIATED PRESS
DATELINE: WASHINGTON                                 LENGTH: Short

CONSTRUCTION SPENDING TAKES 1ST DROP IN MONTHS

Construction spending fell 0.2 percent in August, the first decline in six months, the government said Monday. The fourth straight gain in government outlays failed to offset drops in the private sector.

The Commerce Department said spending on residential, nonresidential and government projects totaled $505 billion at a seasonally adjusted annual rate, down from a revised $506.1 billion in July.

It was the first decline since spending fell 0.5 percent last February.

The department originally estimated that overall spending in July had risen 0.6 percent, to a $510.5 billion rate. The revision showed outlays in July were unchanged from June.

In advance of the report, the economic consensus had forecast a 0.3 percent gain in August.

Residential spending, curbed by high mortgage rates, slipped for a third straight month, down 0.8 percent to a $237.5 billion rate.

Spending on single-family residences, which particularly are interest-sensitive, fell 1.2 percent. It was the third consecutive setback.

Spending on multifamily units, on the other hand, posted a third straight gain, up 1.5 percent.

Nonresidential outlays fell, however, down 1.1 percent to a $95.7 billion rate after falling 1.2 percent a month earlier. Spending on industrial projects, office buildings and hotels and motels advanced, but spending on ``other commercial,'' which includes shopping centers, was down 4.7 percent.

by CNB