Construction spending hit record high in October

The Commerce Department reported on Monday that U.S. construction spending increased more than expected in October, boosted by single-family homebuilding. Outlays rose 0.4% to $2.17tn after an unrevised 0.1% gain in September. Economists polled by Reuters had forecast construction spending climbing 0.2%. Construction spending advanced 5% on a year-on-year basis in October. Spending on residential construction jumped by 1.5% to a rate of $934bn, more than offsetting a 0.3% dip in spending on non-residential construction to a rate of $742.3bn. Meanwhile, the report said spending on public construction fell by 0.5% to an annual rate of $497.6bn amid decreases in spending on both educational and highway construction. Construction of homes and apartments is still below what is needed to meet pent-up demand, said Yelena Maleyev, a senior economist at KPMG.