Washington, DC, July 1--Spending on construction projects fell for a third straight month in May, reflecting declines in the building of homes, offices and shopping malls.
The Commerce Department reported Friday that construction activity dropped 0.9 percent in May to a seasonally adjusted annual total of $1.1 trillion. The decrease caught economists by surprise. They had been forecasting that construction would climb to a record level in May, rising a solid 0.5 percent.
Instead, the new report painted a more subdued picture of construction activity in May and the early spring. Gains in the previous two months were revised to show, instead, declines of 1.1 percent in April and 0.2 percent in March. It marked the first time since mid-2002 that construction had declined for three straight months.
