US construction spending falls 0.8% in May
By MARTIN CRUTSINGER AP Economics Writer
July 01, 2019 07:08 AM
In this June 13, 2019, photo work continues on a new multifamily townhouse home in Mechanicsville, Va. On Monday, July 1, the Commerce Department reports on U.S. construction spending in May.
Spending on U.S. construction projects fell in May, the first drop in six months, as home building fell for a fifth straight month.
The Commerce Department says spending fell 0.8% in May, the first decline since a 1.3% drop in November, to a seasonally adjusted annual rate of $1.29 trillion. Spending In April was revised up from a flat reading to a small gain of 0.4%.
The weakness in May was widespread with spending on single-family homes and apartments down 0.6% while nonresidential construction fell 0.9%. Spending on government projects also dropped 0.9%, led by a by decline in construction spending by the federal government.
Spending on residential construction has been weak for a number of months but builders are hopeful that declining mortgage rates will spur a rebound.
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