However, that drop was on the residential side. On the non-residential side, construction actually increased.
In other economicTuesday, the Institute for Supply Management said that its closely followed gauge of manufacturing activity rose at a slower pace in August compared to July. The index was up 52.9 in August compared to a reading of 53.8 in July.
Thereport showed that the weakness in housing was offset somewhat by strength in nonresidential building which rose by 0.4 percent in July to an all-time high of $346 billion at an annual rate. Construction of shopping centers, office buildings and hotels all showed increases.