Highlights
Construction activity in October was healthy across the board. Other sectors within construction have been up and down but housing continues its sustained uptrend. Construction spending jumped 1.4 percent in October, following a gain of 0.5 percent the month before. The consensus called for a 0.4 percent gain.

The rise in October was led by private residential spending which advanced 3.0 percent after rising 1.1 percent the prior month. For the latest month, new 1-family outlays jumped 3.6 percent, new multi-family construction jumped 6.2 percent, and residential excluding new homes (largely improvements) gained 1.8 percent. Private nonresidential spending rose 0.3 percent after increasing 0.5 percent in September. Public outlays rebounded 0.8 percent, following a 0.1 percent dip the prior month.

On a year-ago basis, overall construction was up 9.6 percent in October, compared to 8.9 percent the prior month.

While manufacturing data this morning continued to indicate a soft manufacturing sector, construction-especially housing-is adding to the recovery's momentum.

Market Consensus before announcement
Construction spending rebounded 0.6 percent in September, following a decline of 0.1 percent the prior month. The boost in September was led by a 2.8 percent increase in private residential outlays after a 1.2 percent fall the month before. For the latest month, private nonresidential spending slipped 0.1 percent while public outlays decreased 0.8 percent. The construction sector continues to improve but largely in housing with the single-family component perhaps joining the multifamily component with notable strength.

2012 Released Schedule

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