Construction spending down in May

By: Aaron Spencer//July 1, 2010//

Construction spending down in May

Aaron Spencer//July 1, 2010//

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Construction spending in the U.S. dropped 0.2 percent in May, according to released Thursday by the U.S. Department of Commerce.

Total construction spending was down to $841.9 billion from a revised April estimate of $843.3 billion. Spending declined for both homebuiding and commercial construction: Homebuilding decreased by 0.4 percent. Commercial construction fell by 0.6 percent.

The decline comes after the expiration on April 30 of a homebuyers tax credit. showed contracts to purchase existing homes fell 30 percent. The West Coast saw the smallest decline in contracts, 20.9 percent. The decline in home purchase contracts comes after three straight months of increases, when the tax credit was available.

Tighter credit and loan defaults in the commercial sector have made financing for new projects difficult for developers.

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