Construction Spending Unexpectedly Strong

Construction spending rose in September, boosted by the biggest jump in government-financed building projects in more than 5 1/2 years, the Commerce Department said. Total spending on new construction rose 1.9% to a record annual rate of $573.4 billion in September. It was the biggest increase since a 2.3% gain in March and stood in contrast to private economists’ forecasts of a 0.1% decline. Analysts said stronger government spending was taking up the slack from sluggish private-sector spending after a strong first half in which housing construction surged. Spending on privately financed and public projects rose in September. The largest part of the increase came in government spending, which jumped 6.4% to $147 billion after falling 1.4% in August.