US construction spending rose more than expected in October as home renovations offset a slump in new housing starts
US construction spending rose 0.5 percent in October, beating forecasts despite a drop in new housing starts. Residential renovations drove the monthly gain.
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USconstruction spending rose 0.5% in October 2025, according to the U.S. Commerce Department Census Bureau. This figure exceeded the 0.1% gain forecast by economists polled by Reuters and followed a 0.6% decline in September. The release of this data was delayed by a 43-day government shutdown. Despite the monthly gain, total construction spending dropped 1.0% year-on-year in October.
USconstruction spending rose 0.5% in October 2025, according to the U.S. Commerce Department Census Bureau. This figure exceeded the 0.1% gain forecast by economists polled by Reuters and followed a 0.6% decline in September. The release of this data was delayed by a 43-day government shutdown. Despite the monthly gain, total construction spending dropped 1.0% year-on-year in October.Private construction projects increased 0.6% in October after a 0.9% decline in September. Residential construction investment shot up 1.3% in October following a 1.4% slump the previous month. However, this growth was primarily driven by residential renovations. Spending on new single-family housing projects dropped 1.3%, while spending on multi-family housing units slipped 0.2%. Investors monitoring the SPDR S&P Homebuilders ETF and the iShares U.S. Home Construction ETF noted that residential investment has been a drag on gross domestic product for three straight quarters.
