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U.S. construction spending unexpectedly drops in May

The Commerce Department reported on Friday that the U.S. construction spending edged down 0.1 percent m-o-m in May, following an upwardly unrevised 0.8 percent m-o-m increase (from 0.2 percent m-o-m) in April. This marked the first decrease in construction spending since February 2021 (-1.1 percent m-o-m).

Economists had predicted construction spending to rise 0.4 percent m-o-m in May.

According to the report, public construction outlays dropped 0.8 percent m-o-m, due to a 0.8 percent m-o-m fall in nonresidential spending and a 0.7 percent m-o-m decrease in residential spending.

Meanwhile, spending on private construction was flat m-o-m, as a 0.2 percent m-o-m advance in residential spending was offset by a 0.4 percent m-o-m decline in nonresidential spending.

On a y-o-y basis, construction spending surged 9.7 percent in May.


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