Construction Spending Decreased in May 2009

2009 July 1

July 1 2009 - Spending on U.S. construction projects fell in May for the fourth time in five months, a sign that a rebound from the housing recession will be slow to develop.

The 0.9 percent decrease was more than forecast and followed a revised 0.6 percent gain the prior month, according to data from the Commerce Department today in Washington. Total residential construction fell 3.5 percent.

Residential real-estate remains in a slump as foreclosures add to the glut of homes on the market and discourage builders, while commercial developers are reluctant to take on new projects until demand picks up. Still, other recent reports indicate the worst of the declines in homebuilding may be over and there are signs the economy is stabilizing.

For residential construction, “any substantial recovery is still far in the future,” Steven Wood, president of Insight Economics LLC in Danville, California, said before the report. “Non-residential construction continued to be pressured lower by rising vacancy rates and declining rents. State and local government budgets are severely pressured.”

Construction Spending in the U.S. Decreased 0.9 Percent in May

Home Prices Fall At Slower Pace
Mortgage Applications Fall 19 Percent

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