U.S. construction spending falls 0.8% in May

WASHINGTON — Spending on U.S. construction projects fell in May, the first drop in six months, as home building fell for a fifth straight month.

The Commerce Department reported Monday that spending fell 0.8% in May, the first decline since a 1.3% drop in November, to a seasonally adjusted annual rate of $1.29 trillion. Spending In April was revised up from a flat reading to a small gain of 0.4%.

The weakness in May was widespread with spending on single-family homes and apartments down 0.6% while nonresidential construction fell 0.9%. Spending on government projects also dropped 0.9%, led by a decline in construction spending by the federal government.

Spending on residential construction has been weak for a number of months but builders are hopeful that declining mortgage rates will spur a rebound.

The 0.6% decline in residential construction reflected a 0.8% fall in spending on new single-family homes partially offset by a 1.9% rise in the smaller apartment sector.

The 0.9% drop in nonresidential construction followed a 1.4% decline in April. The May weakness reflected declines in a number of areas including office buildings and the category that covers shopping centres.

The 0.9% drop in government construction projects was the first decline in five months. Spending by state and local governments fell 0.6% while construction spending by the federal government was down a larger 5.2%.

Just Posted

Separate lightning strikes hit two vehicles near Ponoka

No one injured in lightning strikes on Thursday morning

Government changes working conditions to meet wildfire observers’ needs

Wildfire observers opposed mandatory days off with no pay

More RCMP resources recommended for Red Deer’s downtown and other priorities

City council to consider where to designate three additional officers

Red Deer rents among the lowest in Canada

One-bedroom unit averages $1,056 per month

Rain doesn’t scare visitors away from Westerner Days

Attendance steady at Red Deer fair and exhibition

Fashion Fridays: 5 casual summer dress styles

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Blue Jays bat around in 4th and 6th, rout Tigers 12-1

Blue Jays 12 Tigers 1 DETROIT — Marcus Stroman breezed through seven… Continue reading

Alberta judge denies B.C.’s bid to block ‘Turn Off the Taps’ bill

CALGARY — A Calgary judge has denied British Columbia’s attempt to block… Continue reading

New coach Khari Jones looks to lead Montreal Alouettes to third win in a row

MONTREAL — Veteran defensive end John Bowman has seen his fair share… Continue reading

American father, two sons among passengers on plane in fatal Labrador crash

ST. JOHN’S, N.L. — An American father and his two sons vacationing… Continue reading

Apollo 11 astronauts reunite on 50th anniversary of moonshot

CAPE CANAVERAL, Fla. — Apollo 11 astronauts Buzz Aldrin and Michael Collins… Continue reading

Fast-growing web of doorbell cams raises privacy fears

The woodsy community of Wolcott, Connecticut, doesn’t see a lot of crime.… Continue reading

Statistics Canada reports retail sales fell 0.1 per cent in May to $51.5B

OTTAWA — Canadian retail sales fell for the first time in four… Continue reading

Bank of Canada lowers qualifying rate used in mortgage stress tests

OTTAWA — The Bank of Canada has lowered the rate used by… Continue reading

Most Read