MNI DATA IMPACT: US May Construction -0.8%, Below Expected>

--Private Residential Spending -0.6%; Nonresidential -0.9%, Public -0.9%

By Kevin Kastner and Brooke Migdon

     WASHINGTON (MNI) - Construction spending posted a 0.8% decline in 

May, well below the 0.1% gain expected by the Bloomberg consensus and 

the 0.4% gain expected in the MNI survey, with declines widespread, data 

released by the Commerce Department Monday morning showed.

     April construction spending was revised up to a 0.4% increase from 

the flat reading initially reported, providing some offset to the May 

weakness. 

     Here are the key takeaways from the releases:

     - Private residential construction fell by 0.6% in the month, 

following a 0.6% decline in April. Home building outside new homes, in 

other words remodeling, saw a 1.2% decrease, according to an MNI 

calculation. Total new home building fell by 0.3%. Single-family 

building was fell 0.8%, while multi-family building posted a 1.9% 

increase. 

     - In addition to the decrease in private residential construction, 

private nonresidential construction fell by 0.9% in May. The main 

drivers of the category were commercial (-3.4%), office (-1.0%), and 

manufacturing (-0.6%). 

     - Public construction spending fell by 0.9% in May, with both 

state and local and Federal Government spending down in the month.

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$,MT$$$$]