Construction Spending Drops

A report released by the Commerce Department Monday found that construction spending in August recorded its largest drop in a year, surprising analysts who expected a modest increase. Overall, construction spending fell 0.6 percent in August from July, fueled by a 1.7 percent decline in spending on nonresidential projects. Residential spending rose 0.9 percent, which experts told the AP is another sign the housing market is recovering. Compared with August 2011, private residential spending was up 17 percent.