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US Construction jumps boosted by public spending - Wells Fargo

Total construction outlays were up 1.4% in October, marking the third consecutive month of improvement, noted economist from Wells Fargo. They explained that public spending drove the increase, while private outlays turned positive.

Key Quotes: 

“Construction spending was up 1.4 percent in October, well above expectations. Total outlays have accelerated each month since August and are now 2.9 percent ahead of October 2016 on a year-over-year basis. Both public and private spending increased in October, with public spending advancing 3.9 percent and private outlays growing 0.6 percent.”

“Public outlays had another strong month, as hurricane damages likely continued to boost spending. The gains were mostly from public nonresidential projects which increased 4.0 percent, with residential spending declining 3.0 percent. Spending on public safety, transportation, and highway and street projects each advanced in October, although power and sewage and waste disposal fell after notable increases in September.”

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