Spending on residential construction reached a seasonally adjusted annual rate of $294.2 billion in October, 3.0 percent above the revised September estimate of $285.7 billion, according to figures from the U.S. Department of Commerce released today.
The increase in residential construction spending contributed to an increase in overall spending. Expenditures on all U.S. construction-both public and private-in October reached $872.1 billion, 1.4 percent above the revised September estimate of $860.4 billion. That figure turned out to be almost three times more than what economists forecast, according to Bloomberg.
"Healing in the residential real estate market, boosted by rising property values and record-low borrowing costs, is helping to sustain building projects. Still, the fiscal cliff of tax increases and spending cuts set to take effect next year, absent a deal negotiated by President Barack Obama and Congressional Republicans, may depress non-residential work as government and businesses delay construction," Bloomberg wrote.
