Construction spending rose in October for the 10th month in a row, largely because of work on commercial buildings and government-funded public projects.
Spending on construction increased 0.6% in October to just over a $2 trillion annual rate, the Commerce Department reported Friday.
Economists polled by The Wall Street Journal had forecast a 0.3% increase.
Construction spending reveals how much the government and private companies spend on projects, from housing to highways. More spending tends to be a sign of good times and less spending typically occurs when the economy is weak.
High interest rates have tempered demand for new homes and apartments, but they have had less effect on other forms of construction.
Total construction outlays rose almost 11% in the 12 months ending in October, compared to the 1% uptick in residential investment during the same span.
Government-funded construction has jumped 16% in the past year to buoy the industry.
The Biden administration in 2021 and 2022 approved massive subsidies and other incentives for businesses to build new plants in the U.S., contributing to the recent strength.
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