WASHINGTON, July 1 U.S. construction spending edged up in May as higher mortgage rates because of the Middle East conflict constrained homebuilding.
The Commerce Department’s Census Bureau said on Wednesday that construction spending rose 0.1% after a downwardly revised 0.3% increase in April
Economists polled by Reuters had forecast construction spending gaining 0.1% after a previously reported 0.4% increase in April. Construction spending fell 1.5% on a year-over-year basis in May. Spending on private construction projects was unchanged after rising 0.3% in the prior month.
Investment in residential construction increased 0.3%, reflecting renovations. Spending on new single-family housing projects dropped 0.1%. It tumbled 4.0% year-on-year in May.