U.S. construction spending jumped by more than expected in October, driven higher by demand for single family homes.
The Census Bureau reported that construction spending rose a seasonally-adjusted 1.3 percent in October compared with September. Compared with a year ago, October construction spending is up 3.7 percent.
During the first ten months of this year, construction spending amounted to $1.19 trillion, 4.3 percent above the same period in 2019.
Single-family home construction climbed an astounding seasonally adjusted 5.6 percent in October, helping to lift total private residential construction 2.9 percent for the month. Compared with October of 2019, single-family construction spending is up 13.3 and total private residential construction is up 14.5 percent. Year to date, single-family construction spending is up 5 percent.
Nonresidential private construction fell 0.7 percent, weighed down by a 3.1 percent decline in construction spending on hotels and motels. On an annual basis, spending in the lodging category is down 12.7 percent. Office construction fell two-tenths of a percentage point for the month and is down 5.1 percent year-to-date.
Spending on construction of manufacturing facilities fell eight-tenths of the percentage point and is down 8.4 percent year to date.
Government spending overall rose 1 percent in October and is up 4.7 percent year to date. The smaller category of public spending on housing construction is up 34 percent year to date to $7.1 billion year to date.