Construction Spending Rebounded In October

Construction outlays rebounded significantly on public outlays and the private residential component. Construction spending jumped 1.1 percent in October after a 0.1 percent dip in September. Market expectations were for a 0.6 percent boost.

October's increase was led by public outlays which rebounded 2.3 percent after a 1.6 percent fall in September. Private residential spending gained 1.3 percent, following an increase of 0.8 percent the month before.

Private nonresidential construction spending slipped 0.1 percent, following a rise of 0.2 percent in September.

On a year-ago basis, total outlays were up 3.3 percent in October compared to 3.9 percent in September.

October construction outlays probably will nudge up estimates for fourth quarter GDP.

Recent History Of This Indicator:
Construction spending unexpectedly declined in September on public outlays and somewhat on the private nonresidential component. Private residential spending was a positive for the month. Construction spending declined 0.4 percent in September after a 0.5 percent decrease in August. September's decrease was led by public outlays which fell 1.3 percent after a 1.0 percent drop in August. Private nonresidential spending dipped 0.6 percent, following an easing of 0.3 percent the month before. On a positive note, private residential construction spending rebounded 0.4 percent, following a decrease of 0.3 percent in August. And strength was in the new one-family component which advanced 1.1 percent in September, following a 1.2 percent gain the month before.