Construction Spending in July Plunges 1.2%

September 1, 2006 11:30 AM, EDT

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onstruction spending plunged 1.2% in July, the Commerce Department said Friday.

The drop — the biggest in five years — followed a 0.4 rise in June, Commerce said.

conomists had forecast construction spending to dip 0.1%, Bloomberg reported.

Construction spending can boost demand for trucking services because spending increases the number of shipments of goods and building materials.