Construction Spending Drops, But Not on Commercial

On Tuesday, the Commerce Department reported July construction stats, which showed the biggest drop in six months.

However, that drop was on the residential side. On the non-residential side, construction actually increased.

In other economic news Tuesday, 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.

The construction report 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.