US construction spending at seven-month high in October

Spending in the construction sector in the United States rose at its strongest pace in seven months, boosted by activity in the residential sector.

The US Commerce Department released figures on Thursday attesting to the strength of the sector. Spending increased 0.5% month-on-month in October to $1.173trn, its highest level since March of 2016.

Economists had anticipated a rise of 0.6% over the month. However, the preliminary estimate for September was revised up from a reading of -0.4% over the month to flat.

Compared with the same month in 2015, October's spending increased 3.4%, in line with economists' forecasts.

However, private construction spending fell 0.2% in the month to hit $885.9bn as expenditures on non-residential structures such as those for power and manufacturing posted disappointing drops of 3.8% and 2.7% when compared to the prior month.

Total private non-residential investment declined 2.1% on the month to reach $420.0bn.

Public construction spending grew for a third month in a row, expanding by 2.8% to reach $286.79bn as outlays on building highways and on roadworks grew 1.9%.