Construction Spending Down in May

Washington, DC, July 1, 2011 -- Construction began on fewer projects in May, led by sharp declines in spending on government projects, according to the Commerce Department.

Construction spending fell to just above its lowest level in more than a decade.

The Commerce Department says construction spending declined 0.6% in May to a seasonally adjusted annual rate of $757.9 billion.

That is barely above an 11-year low hit in February and roughly half the $1.5 trillion pace considered healthy by most economists.

Government projects fell 0.8% compared to a smaller 0.4% decline for private construction projects.