Slightly above record low: Builders began work on more office buildings, shopping centers and hotels in June, pushing U.S. construction spending higher for a third straight month. But even with the gains, activity remains at depressed levels. The Commerce Department says construction spending rose 0.2% in June to a seasonally adjusted annual rate of $772.3 billion. That put overall spending 1.2% higher than the 11-year low hit in March. It is just half of the $1.5 trillion pace considered healthy by most economists. In June, residential construction declined, reflecting a big drop in apartment construction, and spending on government building projects also fell. But private nonresidential activity rose to the highest level since late 2010.
Halts four-month rise: A private trade group says manufacturing activity barely grew in July, falling to the weakest level since just after the recession ended. The Institute for Supply Management, a trade group of purchasing executives, says its index of manufacturing activity fell to 50.9 percent in July from 55.3 percent in June. That’s the lowest reading since July 2009, one month after the recession officially ended. Any level above 50 indicates growth. The index topped 60 for four straight months earlier this year. But manufacturing has stumbled in recent months.
