Homebuilding slump hampers construction spending

WASHINGTON — Construction spending fell again in April as home building continued a more than two-year-long slide. The weakness was offset somewhat by an increase in non-residential spending activity which climbed to a record level. The Commerce Department reported that construction activity fell by 0.4% in April after having been down 0.6% in March. Construction has not increased since last September as the building industry continues to be battered by the worst slump in housing in decades. Meanwhile, a key index of activity in the manufacturing sector showed an unexpected increase in May. The Institute for Supply Management’s index of manufacturing activity edged up to 49.6 in May compared to an April reading of 48.6. For the full story visit http://www.latimes.com/business/la-fi-econ3-2008jun03,0,3697418.story