May Construction Spending Increases 0.9%

Washington, DC, June 29, 2007—Construction spending increased j0.9% in May, according to a report from the Commerce Department. It was the largest increase since February 2006.

Economists had forecast an increase of 0.1% during the month.

The gain was driven by a 4.1% increase in spending on federal projects and a 2.7% increase in spending for private nonresidential construction.

Spending for private residential projects was off 0.8% during the month. That followed a drop of 0.4% in April.