U.S. Construction Spending Falls Unexpectedly in May

Construction spending in the United States declined last month against market expectations, despite the increasing private homebuilding activity, amid decline in public and nonresidential, data showed on Thursday.

Construction spending fell by 0.3% in May, following a slight increase of 0.1% in April, according to the U.S. Department of Commerce.

A recent Reuters poll expected construction spending would rise by 0.4%.

On an annual basis, construction spending grew by 7.5%.

Private construction spending declined by 0.3%, with expenditure on private nonresidential construction dropping by 1.1%.

Spending on public construction projects retreated by 0.2% in May.

It is worth noting that construction spending accounts for about 3.6% of the gross domestic product (GDP).