“Construction spending declined 0.8 percent in May following a 2 percent tumble in April, the Commerce Department reported Friday. The April figure had been the biggest monthly setback in five years.
The back-to-back declines in overall construction caught analysts by surprise. They had been expecting a rebound following the big drop in April. Economists, however, still expect construction to contribute meaningful growth to the overall economy this year.”
If you read our website, this should come as no surprise. The Fed has been propping up the markets with cheap money, but the reality is that the core economy is unsound. This fall in construction is the beginning of the realities of the next recession.