Construction spending flat in May

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Associated Press

WASHINGTON (AP) – U.S. construction spending was flat in May with home construction falling again, as buyers face climbing prices and a shortage of available properties on the market.

The Commerce Department reported on Monday no increase in construction spending in May, which follows a new home construction report two weeks ago showing that housing starts fell for the third straight month.

Overall spending was reported at a seasonally adjusted annual rate of $1.23 triillion, the same as last month’s revised figure.

The flat May number follows April’s decline of 0.7 percent, which was revised from an originally reported drop of 1.7 percent. Analysts last month said they thought April’s dismal number was an anomaly and had expected a modest rebound in May.

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