Summary Box: Construction spending falls in May

AP News
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Posted: Jul 01, 2011 3:42 PM
Summary Box: Construction spending falls in May

SPENDING DOWN: Spending on construction projects fell 0.6 percent in May to a seasonally adjusted annual rate of $757.9 billion, the Commerce Department said Friday. That put overall spending barely above an 11-year low hit in February. And it is roughly half the $1.5 trillion pace considered healthy by most economists.

RECOVERY YEARS AWAY: Analysts say it could take another four years before construction returns to healthier levels. The weak construction spending data showed Americans are reluctant to both build and buy.

HOMES, GOVERNMENT: Home construction fell 2.1 percent, with much of the decline in apartment building. Spending on government projects fell for the eighth straight month.