Construction Spending Drops in May

Construction spending fell 0.2% in May, the first decline in three months, the Commerce Department said Thursday.

The decrease to an $841.9 billion level followed a revised 2.3% rise in April that was smaller than originally reported.

Economists had forecast a 0.8% drop in construction spending in May, Bloomberg reported.

Private residential construction fell 0.5%, while spending on private non-residential construction projects dropped 0.6%. Public construction spending rose 0.4%.

Construction spending can boost demand for trucking services because spending increases the number of shipments of goods and building materials.