US construction spending jumps to 8-year high, lifted by home building, federal government
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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.
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More Americans are buying new homes or renting apartments, driving greater residential development. Construction spending has increased 13 percent in the past 12 months.