CSBJ Daily

The Associated Press

Construction spending fell again in February as home building tumbled for a record 24th straight month.

The Commerce Department reported Tuesday that overall construction activity dropped 0.3 percent in February, reflecting weaknesses not only in home building but also in nonresidential activity. Only government building projects showed a gain in February.

Residential construction fell by 0.9 percent in February. Residential activity has fallen every month since March 2006, a record period of declines that underscored the severe downturn in housing.

Analysts believe that housing will keep falling until a record glut of unsold homes is reduced. That effort is being hindered by the fact that mortgage defaults have soared to record levels, reflecting the abuses that occurred in lending activity at the height of the housing boom.

The weakness in housing is combining with soaring energy prices and a severe credit crunch to push the economy close to a recession.