U.S. construction spending jumped in October, fueled by solid gains in home building and the largest increase in federal construction in nine years.

The Commerce Department says construction spending rose 1 percent in October from the previous month to a seasonally adjusted annual rate of more than $1.1 trillion. That's the highest level since December 2007 when the Great Recession began.

The construction of single-family homes and apartments climbed 1 percent, also reaching their highest level since December 2007. Manufacturers boosted their construction spending by 3 percent. And federal government building soared 19.2 percent, the biggest increase since October 2006.

More Americans are buying new homes or renting apartments, driving greater residential development. Construction spending has increased 13 percent in the past 12 months.