U.S construction spending increased by more than expected in May even as revised figures show stronger than initially reported construction spending in April, according to figures released Monday by the Commerce Department.
The initial estimates for construction spending in May came in at a seasonally adjusted annual rate of $830 billion, a 0.9 percent increase from revised April estimates.
Although most economists had predicted construction spending to increase in May, most had predicted a far more modest, 0.2 percent increase.
Furthermore, April construction spending figures were revised to show a 0.6 percent increase from March levels, notably stronger than the 0.3 percent growth initially reported.
The growth in construction spending was especially strong in the private sector which recorded a 1.6 percent increase in May, growing faster than the 1.3 percent increase in April.
Offsetting some of the growth in the private sector, public construction spending fell in May, dropping 0.4 percent - the fifth consecutive month of declining public sector construction spending.
by RTT Staff Writer
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