WASHINGTON Dec 1 U.S. construction spending
increased in October to a seven-month high amid gains in home
building and public outlays, and estimates for the prior two
months were revised sharply higher, pointing to strength in the
The Commerce Department said on Thursday that construction
spending increased 0.5 percent in October to $1.173 trillion,
the highest since March 2016. Construction spending in September
was revised up to show it unchanged instead of declining 0.4
percent as previously reported.
Outlays for August were also revised higher to show a 0.5
percent gain rather than the previously reported 0.5 percent
drop. Construction spending was up 3.4 percent from a year ago
October's increase was in line with economists expectations.
Spending on private construction projects slipped 0.2
percent in October as outlays on private nonresidential
structures - which includes factories, hospitals and roads -
tumbled 2.1 percent after falling 0.8 percent the prior month.
Spending on private residential construction, however, rose
1.6 percent after increasing 0.6 percent in September.
The government reported on Tuesday that spending on
nonresidential structures contributed 0.26 percentage point to
the third-quarter's 3.2 percent annualized growth rate.
Public construction spending jumped 2.8 percent in
October, rising for a third straight month. Outlays on state and
local government construction projects advanced 2.3 percent,
also gaining for a third straight month.
Federal government construction spending surged 8.1 percent,
reversing September's 1.6 percent drop.
(Reporting By Lucia Mutikani; Editing by Andrea Ricci)