U.S. construction spending rose 1.1 percent during the month of October due mainly to increases in homebuilding and government nonresidential projects.
According to preliminary estimates from the Commerce Department, October construction spending was at a seasonally adjusted annual rate of $971 billion. The new data also revised the August and September rates upward from the previously estimated $955 billion and $951 billion, respectively, to $961 billion and $960 billion.
Total construction spending is up 3.3 percent year-over-year.
Private spending on homebuilding was the biggest contributor to October’s gains, rising 1.3 percent to a rate of $354 billion. That rate is 1.9 percent above where it stood one year ago at this time.
Spending on single-family home construction rose 1.8 percent during the month to a rate of $198 billion and is now up 13.2 percent year-over-year. Spending on apartments rose 1 percent during the month and is up 27.2 percent year-over-year at a rate of $45 billion.
Government nonresidential projects contributed to the overall gains as well, up 2.4 percent to $273 billion. Government spending increased in all of the 12 nonresidential categories save for sewage and waste disposal, which fell 0.5 percent. The largest percent gains were commercial, up 11.2 percent to $2 billion; public safety, up 10.7 percent to $9.5 billion, and office, up 8.1 percent to $8 billion. Both power and conservation and development spending were up 5.2 percent to $12.4 billion and $8.3 billion, respectively.
Private nonresidential dipped 0.1 percent to a rate of $338.5 billion, but remains up 6.4 percent year-over year. The largest percent gains in private nonresidential were lodging, up 3.7 percent to $17 billion; manufacturing, up 3.4 percent to $57 billion and transportation, up 2.5 percent to $11.7 billion.
Government residential spending fell 2.2 percent to a rate of $5.3 billion. That rate is down 11 percent year-over-year.
Total private spending was up 0.6 percent to a rate of $692 billion, up 4 percent year-over-year. Total government spending rose 2.3 percent to a rate of $278.5 billion and is up 1.5 percent on the year.
Overall residential construction spending was up 1.3 percent in October to a rate of $359 billion. That figure is up 1.7 percent from the previous year. Overall nonresidential spending was up 1 percent to $612 billion, up 4.3 percent year-over-year.