MNI DATA ANALYSIS:US October Construction Spending Jumps 1.4%>

--Residential Excluding New Homes Up 1.4%; New Homes -0.1%

--Total Private Spending Up 0.6%; Public Surges 3.9%

By Kevin Kastner and Holly Stokes 

     WASHINGTON (MNI) - Construction spending was up 1.4% in October, 

well above expectations, fueled by a 3.9% jump in public construction, 

the largest in three years, data released by the Commerce Department 

Friday morning showed. 

     Private construction spending rose 0.6% in October following a 

declines in the previous three months. 

     Analysts had expected construction spending to rise 0.5%, adding to 

a 0.3% rise in September. With the latest data, September construction 

was unrevised at that 0.3% increase, but August spending was revised up 

to a 0.5% increase from the 0.1% rise previously reported, a positive 

for the next revision to third quarter GDP. 

     Private residential construction spending was up 0.4% in the month, 

but total new home building fell 0.1% based on an MNI calculation. 

Single-family building rose 0.3%, while multi-family building posted a 

1.6% decline from September. Residential construction excluding new 

homes, which captures remodelling was up 1.4% based on an MNI 

calculation. This followed a 1.1% decline in September. 

     Private nonresidential construction was up 0.9% in October after 

declines in the previous four months. There were increases in office, 

lodging and manufacturing construction, but declines in power and 

commercial. 

     The data suggest that fixed investment started off the fourth 

quarter ahead of the previous quarter's average. 

     The 3.9% jump in public construction reflected a 11.1% surge in 

Federal Government spending, also the highest since October 2014, while 

state and local building rose 3.3% in the month. The data suggest a 

stronger reading for government spending to start the fourth quarter. 

     ** MNI Washington Bureau: 202-371-2121 ** 

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