US construction spending fell unexpectedly by 0.7 per cent in May from a record level as both residential and non-residential building slowed, the government said on Monday.
Spending to build homes, offices, schools and other residential and non-residential buildings slipped to an annual rate of $852 billion in the month before last, the Commerce Department said. April's pace was revised downward to $858.2 billion, still an all-time high.
Economists were expecting a 0.1 per cent rise in May.
Private non-residential construction dropped 3.1 per cent to $173 billion, the lowest pace since June 1997. Private residential spending dipped 0.8 per cent to $412.3 billion.