Homebuilder exchange traded funds (ETFs) were deflated at the news about a further slump in construction spending as the housing crisis deepened.
For the month of May, it was down 0.4%, making it the 11th drop in the last year, reports Martin Crutsinger for the Associated Press. It was slightly less than expected, and office and hotel construction showed strength.
Residential construction fell by 1.6% in May, though, the 25th decline in 26 months.
Flooding and severe storms in the Midwest is bolstering optimism for some people, though: builders and contractors. Damage from the tornadoes and floods has surpassed $4 billion, reports Michael J. Crumb for the Associated Press. Repair and reconstruction efforts in the region could rejuvenate the sector.