The Commerce Department reported Monday, July 1, that spending fell 0.8% in May, the first decline since a 1.3% drop in November, correcting to a seasonally adjusted annual rate of $1.29 trillion. April spending, which was previously reported as flat, was revised to a small gain of 0.4%.
The market’s weakness in May was widespread and reflected a spending drop of 0.6% in construction of single-family homes and apartments as well as a 0.9% drop in both nonresidential construction and government projects, led by a decline in federal government construction spending.