July construction spending tumbles to 10-year low

WASHINGTON (Reuters) - U.S. construction spending fell more than expected in July to its lowest rate in 10 years, according to a government report on Wednesday that added to fears economic growth was stagnating.

The Commerce Department said construction spending dropped 1.0 percent to an annual rate of $805.2 billion, the lowest since July 2000. June's construction outlays were revised down to show a 0.8 percent fall, instead of the previously reported 0.1 percent gain.

Economists polled by Reuters forecast construction spending falling 0.5 percent in July.

(Reporting by Lucia Mutikani; Editing by James Dalgleish)