Construction spending up 1.1% in October

WASHINGTON — Newly built homes and schools boosted U.S. construction spending in October to the highest level since May.

The Commerce Department says construction spending rose 1.1% in October, after having slipped 0.1% in September.

Fueling the gains in October was a 1.8% increase in spending on single-family houses. A similar boost in building schools increased government construction spending 2.3%, while private construction of power plants and commercial centers slipped in October.

Still, the solid growth in homebuilding underlines that sector's weakness during much of the past year. Over the past 12 months, private residential construction spending has risen just 1.9% to an annualized rate of $353.8 billion.

Total construction spending has climbed 3.3% from a year ago to $971 billion.