Construction spending dropped –0.9%

• Construction spending fell more than expected again May.  The drop was largely contributed by the drop in homebuilding construction.
• Construction spending fell –0.9% in May, following a revised following a revised +0.6% rise in the previous month.
• Economist had expected the construction spending to fall by –0.6%  following a rise of +0.8% in April.
• Compared with the same period last year, May’s construction spending was down –11.6% for the first 5 months of the year.  The figure is off 11.7% from 2008.
• Government-sponsored construction dipped 0.6 percent in May. Educational building rose 0.5 percent, but highway construction dropped 1.3 percent.
• Spending on private construction fell –1% in May compared to April.
• This includes a –3.4% decline in residential construction.
• Non-residential construction was up +0.5%

Source: RTT News & Barron's