Construction Spending Gains 0.9%

Construction spending rose 0.9% in May, the fourth straight monthly increase and the biggest rise in almost a year and a half, the Commerce Department said Friday.

The upturn was the biggest since February 2006 and followed 0.2% rise in April that was higher than the 0.1% originally reported.

The increase was well above economists’ forecasts of a 0.1%, Bloomberg reported.

Private residential construction fell 0.8%. Public spending jumped 2.2%, led by hospitals and highways.

Construction spending can boost demand for trucking services because spending increases the number of shipments of goods and building materials.