The construction industry posted a slight gain in May as companies and the government increased spending on projects across the U.S.
Spending on construction projects rose 0.9% in May to $1.93 trillion, the Commerce Department reported Monday.
Wall Street was expecting construction spending to rise 0.5% in April.
Construction spending reveals how much the government and private companies spend on projects, from housing to highways. The more the U.S. spends on construction, the higher the level of economic activity.
The government revised spending on construction in April to 0.4% from an initial read of a 1.2% increase.
Over the past year, construction spending was up 2.4%.
In terms of residential real estate, private residential construction fell 11.6% in May. Single-family construction fell sharply by 25%, but was offset by multifamily construction, which increased by 20.4%.
Spending on public residential construction rose by 12.3%. The U.S. increased spending on public residential construction by 8.3%.
Stocks
DJIA,
SPX,
were down in early trading on Monday. The 10-year Treasury note
TMUBMUSD10Y,
fell below 3.8%.
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