The expenditure for building in the United States decreased in May since the highest mortgage rates and the increase in inventories have weighed on projects of uniform accommodation.
On Tuesday, the Department of Commerce reported that the expenditure for construction decreased by 0.3% in May, after a drop of over 0.2% in April.
The economists consulted by Reuters provided that the expense for building would decrease by 0.2% after a 0.4% drop previously reported in April. In May, the expenditure decreased by 3.5% in the annual comparison.
The expenses with private construction projects have withdrawn by 0.5%. The investment in residential construction has also decreased by 0.5%, with the expenditure for new projects of uniform housing down 1.8%.
Mortgage rates remained high, since imported products rates have increased economic uncertainty, leading the Federal Reserve to stop its interest rates cutting cycle. The inventory of new houses is at the last level at the end of 2007.
The shopping for multifarious accommodation remained unchanged in May. Investments in non -residential private structures such as offices and factories have decreased by 0.4%.
Public construction projects has increased by 0.1%. The expenses with the construction of state and municipal governments have not changed, while the expenses for federal government projects increased by 1.0%.
Source: Terra
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