Construction Spending Rises Second Straight Month

Washington, DC, Dec. 1, 2010 -- Construction spending in the U.S. rose for the second consecutive month in October, thanks to growth in residential construction and government building projects.

The Commerce Department said construction spending increased 0.7% in October, equaling the 0.7% gain in September. The market was expecting a 0.5% decline.

It was the first time that construction has risen for two straight months since March and April. Spending rose in October to a seasonally adjusted annual rate of $802.3 billion.

Nevertheless, construction spending is 33.7% below the peak hit in March 2006.