WASHINGTON — U.S. construction spending rose less than expected in May, which could prompt a further downgrading of second-quarter economic growth estimates.
Construction spending edged up 0.1 percent to an annual rate of $956.1 billion, the Commerce Department said Tuesday. However, April’s construction spending was revised up to show a 0.8 percent rise, taking some of the sting out of the report.
Economists polled by Reuters had expected construction spending to advance 0.5 percent after a previously reported 0.2 percent gain.
The data was the latest to suggest the economy’s rebound from a brutally cold winter could fall short of expectations.