U.S. construction spending rose more than expected in November, reaching its highest level in 10-1/2 years, which could provide a lift to fourth-quarter economic growth.
The Commerce Department said on Tuesday that construction spending increased 0.9 percent to $1.18 trillion, the highest level since April 2006. It was boosted by gains in both private and public sector investment
Construction spending in October was revised up to show a 0.6 percent rise instead of the previously reported 0.5 percent increase. Construction spending was up 4.1 percent from a year ago in November.
Economists polled by Reuters had forecast construction spending rising 0.6 percent in November. November’s better-than-expected increase and October’s upward revision to construction spending could prompt economists to raise their gross domestic product estimates for the fourth quarter.