WASHINGTON - Construction spending unexpectedly rose 0.8% in September to a seasonally adjusted annual rate of $940.3 billion, boosted by a record high level of public construction, the Commerce Department reported today.
Public construction rose 1.3% to $326.4 billion, the highest amount dating back to January 1993, led by education and energy spending. State and local spending increased 1.4% and reached a record high of $298.5 billion for the month. Federal spending was up 0.7%.
Spending on private construction projects increased 0.5% and private residential construction gained 3.9%, the largest increase since July 2003. Nonresidential construction fell 1.8%.
Economists estimated construction spending would fall 0.2% in September, according to the median estimate from Thomson Reuters.
Total construction for August was revised lower to a 0.1% decline from a 0.8% increase, which was initially reported. Private construction was revised lower to a 0.4% increase from a 1.8% increase.
Construction spending was down 13.0% for the year ending in September.
