Construction Spending Off in May

Washington, DC, July 3, 2006—Construction spending were off 0.4% in May, the biggest decline since September 2004, according to the Commerce Department estimated Monday.

In May construction outlays decreased to a seasonally adjusted annual rate of $1.21 trillion, up 6% year-over-year.

The drop was unexpected. Economists had forecast a 0.2% gain in construction spending.

Expenditures in April were also revised lower to 0.2% a drop from the 0.1% decrease previously estimated.