Construction spending hits 10-year high

by Ryan Smith04 Jan 2017

US construction spending hit its highest level in more than 10 years in November after an unexpected spurt of growth, the Commerce Department said Tuesday.

Construction spending rose 0.9% to $1.8 trillion, the highest level since April of 2006. The rise was driven by gains in investment in both the private and public sectors, according to a CNBC report. Construction spending for October was also revised upward to show a 0.6% rise instead of the previous estimate of 0.5%. Construction spending was up 4.1% from November of 2015, according to CNBC.

November’s increase exceeded expectations. A Reuters poll of economists had forecast a 0.6% rise in spending. November’s better-than-expected performance, along with October’s upward revision, could spur economists to raise their fourth-quarter GDP estimates, CNBC reported.

Spending on private construction projects rose 1% in November, hitting its highest level since 2006 as single-family home construction and renovations jumped. Public construction spending hit its highest level since March, rising 0.8%, according to CNBC.

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