Washington, DC, December 1, 2005-Spending on construction projects increased 0.7% in October as public-sector outlays jumped, the Commerce Department said Thursday.
Total outlays rose 0.7% to a seasonally adjusted annual rate of $1.13 trillion. Economists were expecting a 0.5% increase.
September's increase was revised down to 0.2% from 0.5% previously.
Spending is up 7.9% in the past year. The figures are not adjusted for inflation.
Public-sector spending climbed 1.9% to $254 billion, the biggest increase since February. Private-sector spending rose 0.3% to $877.8 billion.
Within the private-sector, spending on residential projects increased 0.6% to $630 billion. Spending on nonresidential projects fell 0.3% to $247.7 billion.
Public-sector spending was led by a 2.8% increase in schools and a 4.5% increase in transportation. Highway spending fell 0.2%.
Private nonresidential spending was led by a 1.8% increase in spending on commercial projects, but was held back by declines in offices, factories and health care.
