Washington, Ramadan 26, 1437, Jul 1, 2016, SPA -- U.S. construction spending fell for a second consecutive month in May after the biggest drop in more than five years in April, with weakness hitting all areas of building, the government said in a report Friday that could prompt economists to lower their second-quarter growth estimates. The Commerce Department reported that construction spending fell 0.8 percent in May, following a 2 percent plunge in April. The drop in construction activity in May left total activity at an annual rate of $1.14 trillion, up 2.8 percent from a year ago. The consecutive monthly declines surprised economists, who had expected a rebound following the big April drop. In May, private-sector construction spending fell 0.3 percent. Spending on housing was flat, as a 1.8 percent increase in apartment construction was offset by a 1.3 percent decline in single-family activity. Non-residential construction fell 0.7 percent, with a contraction in the category that includes shopping centers. Government construction dropped 2.3 percent, marking the third consecutive decline. Spending on state and local construction projects-the largest of the public-sector segment-fell 3 percent, while federal construction spending rose 7.5 percent. The flat reading for residential construction left the category at $451.9 billion, or 5.4 percent higher than a year ago. Non-residential construction was $407.4 trillion, up 3.9 percent from a year earlier. Public construction was $284 billion, 2.6 percent below the level in May 2015. The housing bubble burst in 2006, with construction falling for the next five years before it started to rise again in 2012. --SPA 19:48 LOCAL TIME 16:48 GMT www.spa.gov.sa/w
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