US construction spending drops for the first time in six months
The weakness in May was widespread with spending on single-family homes and apartments down 0.6 percent. Read more on realestate.boston.com.
WASHINGTON (AP) — Spending on US 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 percent in May, the first decline since a 1.3 percent 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 percent.
The weakness in May was widespread with spending on single-family homes and apartments down 0.6 percent, while nonresidential construction fell 0.9 percent. Spending on government projects also dropped 0.9 percent, 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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