Construction spending in May declined 0.2%, the Commerce Department reported Thursday. The drop was less severe than economists’ estimated and represents the first decline since February.
Economists expected construction spending to fall 0.8% for the month, according to the median estimate from Thomson Reuters.
Private construction fell 0.5%, the first decline since February. Private residential construction fell 0.4% and nonresidential construction decreased 0.6%.
Public construction increased 0.4%, up for the third straight month. State and local construction increased 0.6% and federal construction fell 1.3%, the first such decline since January.
April’s construction spending was revised lower to a 2.3% increase from the initial 2.7% report.
During the first five months of 2010, construction spending was 12.0% below spending in the same period of 2009.
