Construction spending falls 0.6 pct. in May

AP News
Posted: Jul 01, 2011 10:08 AM
Construction spending falls 0.6 pct. in May

Builders began work on fewer projects in May, led by steep declines in spending on government projects. Construction spending fell to just above its lowest level in more than a decade, evidence that industry remains too weak to boost the economy.

The Commerce Department says construction spending declined 0.6 percent in May to a seasonally adjusted annual rate of $757.9 billion. It is barely above an 11-year low hit in February and roughly half the $1.5 trillion pace considered healthy by most economists. Analysts say it could be another four years before construction returns to healthier levels.

Government projects fell 0.8 percent compared to a smaller 0.4 percent decline for private construction projects.