–Residential Spending Reaches Highest Level Since November 2008.
–Federal Construction Spending Largest Increase In Two Years
By Ian McKendry
WASHINGTON (MNI) – Spending on construction rose 1.4% in October,
well above expectations and boosted by increases in both private and
public construction spending, data released by the Commerce Department
Monday morning showed.
Analysts in a MNI survey had expected construction spending to rise
0.4% in October. Construction in September was revised down to +0.5%
from 0.6% and August was revised up to +1.1% from -0.1%.
Private residential construction rose 1.6% in October, with
single-family construction up 3.6% and multi-family building up 6.2%.
As a result, total new home construction was up 3.0% in October. The
level of private residential spending reached $294.237 billion which was
the highest since November 2008 when it was $308.871 billion
Home remodeling activity rose 1.7% in the month after a 1.2%
decrease in September, a MNI calculation shows.
The Census Department said Hurricane Sandy had a “minimal” impact
on the October data because the storm hit so late in the month.
Private nonresidential construction rose 0.3% in October led by
increases in power (+1.6%), commercial (+1.7%), health care (+1.8%) and
education (+1.4%) which offset decreases in manufacturing (-2.7%) and
highways and streets (-2.3%).
Public construction rose 0.8% in the month, with Federal government
construction spending +10.7% offsetting -0.1% in state and local
government spending.
** MNI Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
