US Construction hits second highest level on record in October

US Construction for October rises 0.9% to a $825 billion annual rate.

Washington -- U.S. construction spending rose in October to its second highest level on record, led by gains in multifamily housing and commercial buildings, government figures showed. Spending increased 0.9 percent during the month to an $825 billion annual rate, the Commerce Department said. The October level was the highest since an annual rate of $829.5 billion in March. Analysts had expected construction spending to rise 0.4 percent in October. At the same time, spending on housing construction has slowed. Spending on single-family housing fell for the sixth consecutive month. An eight-year low in housing affordibility, sluggish stock prices and a decline in consumer optimism are expected to keep home building from reaching another record this year. Figures last month from the Commerce Department showed housing starts rose 0.1 percent in October, as an increase in apartments and multifamily projects offset the seventh decline in single-family homes in the last nine months. Spending for non-residential commercial projects rose 1.5 percent in September after a 2.7 percent increase a month earlier, Commerce said. Spending advanced for industrial buildings, churches and schools.