Construction spending increased 0.4 percent from September to October as a pickup in single- and multifamily residential building outweighed declines in public outlays and mixed results for private nonresidential categories, according to an analysis of a new government report released by the Associated General Contractors of America. Association officials said construction has yet to begin on many federally funded projects amid lengthy regulatory reviews.

“Despite a flurry of project announcements by the federal government, much of the money still has not been awarded in construction contracts, let alone work under way,” said Ken Simonson, the association’s chief economist. “At the same time, major private categories are growing more slowly or shrinking.”

Construction spending totaled $2.174 trillion at a seasonally adjusted annual rate in October. That figure is 0.4 percent above the upwardly revised September rate and 5.0 percent above the October 2023 level.

Private residential spending increased 1.5 percent in October and 6.4 percent compared to October 2023. Single-family homebuilding rose 0.8 percent and 1.3 percent, respectively. Multifamily construction edged up 0.2 percent in October but declined 6.8 percent from a year earlier. Spending by homeowners on additions and renovations jumped 2.7 percent for the month and 18.5 percent year-over-year.

Public construction spending declined 0.5 percent for the month but rose 4.5 percent over 12 months. Among the top three segments, highway and street construction slipped 0.7 percent and 1.2 percent respectively, education construction dipped 0.4 percent for the month but rose 0.6 percent, and transportation spending fell by 0.1 percent in October but increased 5.4 percent from a year earlier.

Private nonresidential spending slipped 0.3 percent for the month but posted a 3.5 percent year-over-year gain. Of the three largest segments, manufacturing construction was unchanged from September but 16.3 percent higher than in October 2023. Power construction rose 0.2 percent for the month and 5.3 percent year-over-year. Commercial construction (including warehouse, retail, and farm) fell by 1.1 percent for the month and 11.2 percent compared to last year.

Association officials urged the incoming Trump administration and Congress to explore ways to accelerate federal permitting reviews for infrastructure and construction projects. They also urged the new administration to give federal agencies greater flexibility in complying with new Buy America rules. For example, agencies need to be able to provide waivers when no domestically produced materials are available.

“There is no reason the federal government can’t hold projects to the same high standards and still complete required reviews in months, instead of years,” said Jeffrey D. Shoaf, the association’s chief executive officer. “Cutting federal review times and giving agencies more flexibility will help get more construction projects started.”