According to the Commerce Department U.S. Construction spending is up 1.1 percent, the highest level since May.
NAHB analysis of Census data found that all three components of private residential construction spending increased in October. Single-family spending increased 1.8%, multifamily spending increased 1.0% and home improvement spending increased 0.6% from revised September estimates.
Total private residential construction spending increased to a seasonally adjusted annual rate of $353.8 billion. On a 3-month moving average basis, from October 2013, the annualized pace of total private residential construction spending increased 1.3%.
The positive growth in residential construction spending matches the positive market sentiment. For example, the November NAHB/Wells Fargo Housing Market Indexrose four points to a level of 58 for the 5th consecutive month above 50. Additionally, NAHB’s Multifamily Production Index (MPI) has had 11 consecutive quarters above 50.
Total nonresidential construction also increased in October. The annualized pace of spending on commercial, transportation, power, education and other nonresidential projects was up 1% from September and 4.3% from October of 2013.