The Commerce Department reported today that spending on non-residential real estate construction fell in August, despite gains made in the housing market. Overall construction spending — residential, commercial and government — fell 0.7% in August compared to July, according to Commerce. It was the second straight month of losses.

This drop has lowered construction spending to a seasonally adjusted annual rate of $834.4 billion. While this is 12% better than in February 2011, analysts call this figure far from healthy.

While residential construction spending increased 0.9% last month to an adjusted annual rate of $273.5 billion — almost 18% above levels from a year ago — expenditures on private commercial construction (office buildings, shopping centers and hotels) in August was 1.7% lower than in July to an annual rate of $288.7 billion. Government construction activity fell 0.8% that same month to a seasonally adjusted annual rate of $274.9 billion, which is 3.5% off 2011 levels.

Analysts claim the drop in spending can be attributed to the high unemployment numbers and stagnant wage growth, as well as the decrease in manufacturing jobs and fewer and fewer businesses willing to shell out any more money. The Federal Reserve is looking to boost the economy and lower the jobless rate by buying up more mortgage-backed securities.