Construction spending rose at the fastest pace in four years while manufacturing picked up at the fastest rate in more than two years.
U.S. developers boosted construction spending in October at the fastest pace in more than four years, propelled by a surge in government buildings, and manufacturing surged in November at the fastest pace in 2½ years as factories ramped up production, stepped up hiring and received orders at a healthy clip, according to reports released today.
The Commerce Department says construction spending increased 0.8 percent in October to a seasonally adjusted annual rate of $908.4 billion. That's up from September, when spending fell 0.3 percent.
The October pace was the best since May 2009. Spending has increased 5.3 percent in the 12 months ending in October.
A 3.9 percent surge in public buildings drove the October increase. But construction of private homes and commercial projects fell 0.5 percent.
Both the October and September figures were released today, after reporting was delayed due to government shutdown in October.
The Institute for Supply Management says its index of manufacturing activity rose in November to 57.3. That's the up from 56.4 in October and the highest since April 2011. A reading above 50 indicates growth.
A measure of hiring rose to its highest level in nearly 18 months.
Manufacturing activity has now expanded for six straight months after hitting a rough patch in the spring. But the survey conflicts with measures of factory activity, making it difficult to discern clear trends.