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Bad news for builders

construction spending fell sharply in May

July 01, 2009

WASHINGTON (AP) -- Construction spending fell more than expected in May, a sign the problems facing the nation's builders are far from over.

The Commerce Department says construction spending dropped 0.9 percent in May, nearly double the 0.5 percent drop that economists expected. Adding to the signs of weakness, activity in the past two months was revised lower.

Construction rose 0.6 percent in April, lower than the 0.8 percent originally reported. A March increase of 0.4 percent was replaced with a decline of the same amount. That left the April gain as the only increase in the past eight months.

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