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Construction spending rises in May


Home construction spending rose in May.

The housing market experienced a jump in residential construction spending, as the figure performed well as the year approached its halfway point.

Overall residential construction spending improved to $322.3 billion in May, a report from the Department of Commerce explained. That was 1.2 percent higher than the previous month's rate, which was $318.5 billion.

The total construction rate for May was $874.9 billion, a 0.5 percent gain from April's level of $870.3 billion, as well as 5.4 percent improved from May of last year, the report showed. One year ago, the level was $830.4 billion.

"You're going to see a stronger trend as homebuilding continues to pick up," Scott Brown, chief economist at Raymond James & Associates Inc., told Bloomberg. "If we get much better job growth, it would help to support a longer-term trend of growth in construction."

While construction spending rose, there was a slide in the level of mortgage applications during late June. According to a report from the Mortgage Bankers Association, overall applications fell 3 percent from the previous week. This brought it to the lowest point on record since 2011.

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