US construction spending rises solidly to near eight-year high
WASHINGTON: US construction spending rose more than expected in October as outlays rose across the board, suggesting the economy remains on firmer ground despite some slowing in consumer spending and persistent weakness in manufacturing. Construction spending increased 1.0 percent to a seasonally adjusted $1.11 trillion rate, the highest level since December 2007, after an unrevised 0.6 percent gain in September, the Commerce Department said on Tuesday. Construction spending has risen every month this year and is likely to support the economy in the final three months of the year as it deals with the headwinds of a strong dollar and spending cuts by energy firms, which have undermined manufacturing. Frugal consumers are also holding back growth. Economists polled by Reuters had forecast construction spending rising only 0.5 percent in October. Construction outlays were up 13 percent compared to October of last year. Construction spending in October was buoyed by a 0.8 percent rise in private spending, which touched its highest level since January 2008. Outlays on private residential construction gained 1.0 percent and hit their highest level since December 2007, reflecting increases in home building and renovations.