US construction spending up 0.1 percent in May – Quincy Herald-Whig | Illinois & Missouri News, Sports

By MARTIN CRUTSINGER AP Economics Writer

WASHINGTON (AP) - U.S. construction spending barely increased in May as gains in spending on non-residential projects such as office buildings and public construction were largely offset by a big drop in home building.

Construction spending edged up 0.1 percent in May after a much stronger 0.8 percent April increase, the Commerce Department reported Tuesday. The back-to-back gain followed a period of weakness in which spending fell in both January and February and was flat in March.

The construction industry has struggled with an unusually severe winter which curtailed building activity in many regions.

Construction activity totaled $958.1 billion at a seasonally adjusted annual rate in May, up 6.6 percent from a year ago.

Economists are forecasting that housing and overall construction will regain momentum in coming months, helping to boost overall economic growth.

However, housing suffered a setback in April, falling 1.5 percent. Single-family home construction was down 1.4 percent while apartment construction dropped 0.6 percent. Overall, housing construction is up 7.5 percent from a year ago.

Non-residential construction rose 1.1 percent, led by a 4.3 percent rise in construction of power generating facilities. Construction of office buildings was up slightly but spending on hotels and the category that covers shopping centers both showed declines.

Spending on government projects rose 1 percent with a 2 percent jump in spending on state and local building projects offsetting an 8.9 percent decline in spending by the federal government on building projects.

A slump in construction in the winter contributed to the economy shrinking at an annual rate of 2.9 percent in the January-March quarter, the biggest decline since the first quarter of 2009 during the depths of the Great Recession.

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US construction spending up 0.1 percent in May - Quincy Herald-Whig | Illinois & Missouri News, Sports