US construction spending up 0.5 per cent in May as home building at highest level since 2008
WASHINGTON – Spending on residential housing rose in May to the highest level in 4 1/2 years, helping to send overall construction spending higher despite a big drop in nonresidential activity.
The Commerce Department says construction spending rose 0.5 per cent in May compared with April when spending was up 0.1 per cent. Private residential construction rose 1.2 per cent to the highest level since October 2008, further evidence of a rebound in housing.
Spending on nonresidential projects fell 1.4 per cent, dragged lower by declines in office building and the category that includes shopping centres.
Public construction rose 1.8 per cent with state and local activity up 1.6 per cent and federal spending rising 0.6 per cent.
Total construction rose to a seasonally adjusted annual rate of $874.9 billion in May, 5.4 per cent higher than a year ago.
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