Building Activity Drops Sharply
Construction spending fell in May by the largest amount in nearly two years.
The Commerce Department reported that building activity dropped by 0.4 percent in May to a seasonally adjusted annual rate of $1.206 trillion following a 0.2 percent fall in April. It marked the first time in more than three years that construction spending had fallen for two consecutive months. May represented the biggest one-month decline since a 0.7 percent fall in September 2004.
Analysts are forecasting that construction will drop off this year in large part due to rising mortgage rates.
