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.