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US construction spending up in May
[WASHINGTON] US construction spending rose in May amid gains in investment in private and public construction projects, but outlays in the prior month were not as robust as initially thought.
The Commerce Department said on Monday construction spending increased 0.4 per cent. Data for April was revised down to show construction outlays rising 0.9 per cent instead of the previously reported 1.8 per cent surge.
The government revised the construction spending data going back to January 2011 in the May report.
Economists polled by Reuters had forecast construction spending gaining 0.5 per cent in May. Construction spending accelerated 4.5 per cent on a year-on-year basis.
The downward revision to April data could see economists cut further their second-quarter gross domestic product estimates. Growth forecasts for the April-June period were slashed on Friday after the government reported weaker-than-expected consumer spending in May.
The Atlanta Federal Reserve is forecasting second-quarter GDP rising at a 3.8 per cent annualized rate. The economy grew at a 2.0 per cent pace in the first quarter.
In May, spending on private construction projects increased 0.3 per cent after rising 0.4 per cent in April. Outlays on private residential projects advanced 0.8 per cent following a 0.5 per cent gain in April.
Spending on nonresidential structures fell 0.3 per cent in May after rising 0.4 per cent in the prior month.