US construction spending rises 0.8 percent in May

WASHINGTON (AP) — U.S. construction spending posted a solid gain in May, pushing total activity to the highest point since the fall of 2008, with the strength led by a big jump in non-residential projects.

The gains pushed totaled activity to a seasonally adjusted annual rate of $1.04 trillion, the highest level since October 2008.

All major categories showed increases in May, led by a 1.5 percent rise in non-residential building, which reflected increases in spending on hotels, manufacturing facilities and amusement parks.

The economy went into reverse during the January-March quarter, shrinking at an annual rate of 0.2 percent, as consumer spending, construction and other economic activities were hurt by the unusually severe winter.