The report says the increase in construction spending is expected to continue at least through 2003.

And construction spending rose 0.3 percent in May, to $881.6 billion at an annual rate.

Another report, on construction spending, showed a 2.3 percent rise in February, which was also more than expected.

A separate report from the government showed construction spending fell more than expected in March.

In addition, data on construction spending and personal income growth during January were above expectations.

The share of the economy devoted to residential construction spending is 5.1 percent, also a record.

Construction spending rose 1.5 percent in November, hitting a 10-month high.

And construction spending, which sagged in the spring, may turn up.

The February decline pushed construction spending 2.5 percent below where it was a year earlier.

Over all, construction spending was 3.2 percent higher than it was a year ago.