Construction spending in the U.S. unexpectedly decreased in the month of May, according to a report released by the Commerce Department on Friday.
The report said construction spending slid 0.8 percent to an annual rate of $1.143 trillion in May from the revised April estimate of $1.152 trillion.
The drop in construction spending came as a surprise to economists, who had expected spending to climb by 0.6 percent.
The unexpected decrease in construction spending partly reflected a sharp decline in spending on public construction, which tumbled by 2.3 percent to a rate of $284.0 billion.
Spending on state and local construction fell by 3.0 percent to a rate of $260.6 billion, while spending on federal construction jumped by 7.5 percent to a rate of $23.3 billion. Education construction tumbled by 5.4 percent.
The report also said spending on private construction edged down by 0.3 percent to an annual rate of $859.3 billion in May.
While spending on non-residential construction slid by 0.7 percent to a rate of $407.4 billion, spending on residential construction was nearly unchanged at $451.9 billion.
Despite the monthly decrease, the Commerce Department noted total construction spending in May was up by 2.8 percent compared to the same month a year ago.
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