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The U.S. Census Bureau of the Department of Commerce reports that construction spending during July 2006 was estimated at a seasonally adjusted annual rate of $1.2 trillion. While the new figure reflects an increase of more than five percent from the July 2005 figure, it also shows a decline from the June 2006 estimated level of annual construction by more than one percent.
The July 2006 statistics indicate that even though the commercial market is still strong, the residential construction market has brought down the seasonally adjusted rate. In the public construction sector, only the rate for educational construction has shown an increase.
While it appears that construction levels are in decline, it takes at least two months to establish an underlying trend for total construction. Changes in specific categories of construction often take as long as eight months to indicate a clear trend. The national figures for August, to be released in October, may confirm an overall construction decline.
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