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US construction spending edges up in May

Government spending was the only driver of overall US construction spending in May, which edged up a scant 0.1 per cent from a year ago, the Commerce Department said Tuesday.

WASHINGTON: Government spending was the only driver of overall US construction spending in May, which edged up a scant 0.1 per cent from a year ago, the Commerce Department said Tuesday.

May private sector spending on construction fell at an annual rate of 0.3 per cent from April, dragged down by a 1.5 per cent drop in home building spending.

Non-residential construction rose 1.1 per cent.

Government construction spending advanced 1.0 per cent, led by spending on highways.

The May headline number was weaker than expected. Analysts on average estimated overall construction spending would increase 0.4 per cent.

"We anticipate that the blip in residential construction will be temporary; construction spending should continue to recover over the next few months," IHS Global Insight said in a research note.

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